Mellanox (MLNX) closed the most recent trading day at $119.82, moving -0.31% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 0.17%.
Coming into today, shares of the semiconductor company had gained 1.31% in the past month. In that same time, the Computer and Technology sector lost 5.23%, while the S&P 500 lost 4.88%.
MLNX will be looking to display strength as it nears its next earnings release. In that report, analysts expect MLNX to post earnings of $1.75 per share. This would mark year-over-year growth of 10.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $346.45 million, up 13.51% from the year-ago period.
MLNX's full-year Zacks Consensus Estimates are calling for earnings of $7.60 per share and revenue of $1.46 billion. These results would represent year-over-year changes of +6.29% and +9.67%, respectively.
Investors might also notice recent changes to analyst estimates for MLNX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.95% higher. MLNX currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that MLNX has a Forward P/E ratio of 15.81 right now. This represents a discount compared to its industry's average Forward P/E of 18.66.
It is also worth noting that MLNX currently has a PEG ratio of 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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 MLNX in the coming trading sessions, be sure to utilize Zacks.com.