In the latest trading session, Cypress Semiconductor (CY - Free Report) closed at $22.12, marking a -0.18% move from the previous day. This move lagged the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 1.66%.
Coming into today, shares of the chipmaker had gained 33.74% in the past month. In that same time, the Computer and Technology sector lost 6.94%, while the S&P 500 lost 2.76%.
CY will be looking to display strength as it nears 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.
CY's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $2.20 billion. These results would represent year-over-year changes of -19.85% and -11.24%, respectively.
Investors should also note any recent changes to analyst estimates for CY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CY is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, CY is currently trading at a Forward P/E ratio of 20.28. This valuation marks a discount compared to its industry's average Forward P/E of 25.14.
Meanwhile, CY's PEG ratio is currently 2.03. 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 4.11 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 97, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CY in the coming trading sessions, be sure to utilize Zacks.com.