In the latest trading session, Cypress Semiconductor (CY - Free Report) closed at $17.82, marking a -0.39% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.32%. Meanwhile, the Dow lost 1.41%, and the Nasdaq, a tech-heavy index, lost 1.51%.
Prior to today's trading, shares of the chipmaker had gained 4.56% over the past month. This has outpaced the Computer and Technology sector's loss of 7.09% and the S&P 500's loss of 5.09% in that time.
Investors will be hoping for strength from CY as it approaches its next earnings release. On that day, CY is projected to report earnings of $0.24 per share, which would represent a year-over-year decline of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $531.85 million, down 14.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.09 per share and revenue of $2.20 billion, which would represent changes of -19.85% and -11.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CY. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. CY currently has a Zacks Rank of #2 (Buy).
In terms of valuation, CY is currently trading at a Forward P/E ratio of 16.36. This represents a discount compared to its industry's average Forward P/E of 20.29.
Meanwhile, CY's PEG ratio is currently 1.63. 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. CY's industry had an average PEG ratio of 3.46 as of yesterday's close.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.