Magnachip (MX - Free Report) closed the most recent trading day at $11.30, moving +1.44% from the previous trading session. This change outpaced the S&P 500's 0.83% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 1.43%.
Wall Street will be looking for positivity from MX as it approaches its next earnings report date. The company is expected to report EPS of $0.08, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $117.70 million, down 42.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $480 million, which would represent changes of -62.5% and -39.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MX. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MX is currently a Zacks Rank #3 (Hold).
Digging into valuation, MX currently has a Forward P/E ratio of 61.89. This represents a premium compared to its industry's average Forward P/E of 36.99.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.