Magnachip (MX) closed at $14.71 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500's 0.65% gain on the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.9%.
Coming into today, shares of the chip products maker had gained 4.22% in the past month. In that same time, the Computer and Technology sector gained 4.75%, while the S&P 500 gained 2.97%.
MX will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2020. On that day, MX is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $199 million, up 10.93% from the year-ago period.
Investors should also note any recent changes to analyst estimates for MX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 91.18% higher. MX is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, MX is holding a Forward P/E ratio of 22.4. For comparison, its industry has an average Forward P/E of 26.88, which means MX is trading at a discount to the group.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.