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Semtech (SMTC) Stock Moves -0.77%: What You Should Know

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Semtech (SMTC - Free Report) closed the latest trading day at $32.39, indicating a -0.77% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 1.2%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 1.79%.

The chipmaker's stock has climbed by 42.85% in the past month, exceeding the Computer and Technology sector's loss of 0.51% and the S&P 500's loss of 0.85%.

The investment community will be closely monitoring the performance of Semtech in its forthcoming earnings report. The company's upcoming EPS is projected at $0, signifying a 100% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $200.16 million, indicating a 15.38% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.55 per share and a revenue of $869.44 million, indicating changes of +292.86% and +0.08%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Semtech. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 175% lower. Semtech presently features a Zacks Rank of #4 (Sell).

From a valuation perspective, Semtech is currently exchanging hands at a Forward P/E ratio of 59.04. For comparison, its industry has an average Forward P/E of 32.8, which means Semtech is trading at a premium to the group.

We can additionally observe that SMTC currently boasts a PEG ratio of 2.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.95 as trading concluded yesterday.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 241, finds itself in the bottom 5% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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