Magnachip (MX - Free Report) closed the most recent trading day at $7.51, moving +1.49% from the previous trading session. The stock outpaced the S&P 500's daily loss of 5.18%. At the same time, the Dow lost 6.3%, and the tech-heavy Nasdaq lost 4.7%.
Heading into today, shares of the chip products maker had lost 48.07% over the past month, lagging the Computer and Technology sector's loss of 24.96% and the S&P 500's loss of 24.68% in that time.
Investors will be hoping for strength from MX as it approaches its next earnings release. On that day, MX is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 125.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $192 million, up 22% from the year-ago period.
MX's full-year Zacks Consensus Estimates are calling for earnings of $0.89 per share and revenue of $811 million. These results would represent year-over-year changes of +85.42% and +2.37%, respectively.
Any recent changes to analyst estimates for MX should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 36.92% higher. MX is currently a Zacks Rank #2 (Buy).
In terms of valuation, MX is currently trading at a Forward P/E ratio of 8.31. Its industry sports an average Forward P/E of 20.66, so we one might conclude that MX is trading at a discount comparatively.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% 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.