In the latest trading session, Cypress Semiconductor (CY - Free Report) closed at $13.34, marking a -1.26% move from the previous day. This change lagged the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the chipmaker had lost 5.46% over the past month, outpacing the Computer and Technology sector's loss of 8.65% and the S&P 500's loss of 6.76% in that time.
Investors will be hoping for strength from CY as it approaches its next earnings release, which is expected to be February 7, 2019. On that day, CY is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 17.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $599.37 million, up 0.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.34 per share and revenue of $2.48 billion. These totals would mark changes of +50.56% and +6.49%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CY. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.42% higher. CY currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that CY has a Forward P/E ratio of 10.12 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.79.
We can also see that CY currently has a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Communications stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.