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Vishay Intertechnology (VSH) Gains But Lags Market: What You Should Know

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Vishay Intertechnology (VSH - Free Report) closed at $19.58 in the latest trading session, marking a +1.5% move from the prior day. The stock lagged the S&P 500's daily gain of 2.12%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 2.64%.

Prior to today's trading, shares of the chipmaker had gained 2.39% over the past month. This has outpaced the Computer and Technology sector's loss of 6.28% and the S&P 500's loss of 4.4% in that time.

VSH will be looking to display strength as it nears its next earnings release, which is expected to be February 5, 2019. On that day, VSH is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 37.84%. Meanwhile, our latest consensus estimate is calling for revenue of $765 million, up 13.42% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.05 per share and revenue of $3.02 billion. These totals would mark changes of +43.36% and +16.14%, respectively, from last year.

Any recent changes to analyst estimates for VSH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.84% higher. VSH is currently a Zacks Rank #2 (Buy).

Digging into valuation, VSH currently has a Forward P/E ratio of 9.39. This represents a discount compared to its industry's average Forward P/E of 10.64.

It is also worth noting that VSH currently has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Discretes industry currently had an average PEG ratio of 0.87 as of yesterday's close.

The Semiconductor - Discretes industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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