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Magnachip (MX) Stock Sinks As Market Gains: What You Should Know

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Magnachip (MX - Free Report) closed at $10.35 in the latest trading session, marking a -1.9% move from the prior day. This change lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.09%.

Wall Street will be looking for positivity from MX as it approaches its next earnings report date. On that day, MX is projected to report earnings of $0.08 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $117.70 million, down 42.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.18 per share and revenue of $480 million. These totals would mark changes of -62.5% and -39.41%, respectively, from last year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MX is currently a Zacks Rank #4 (Sell).

Digging into valuation, MX currently has a Forward P/E ratio of 58.61. For comparison, its industry has an average Forward P/E of 37, which means MX is trading at a premium to the group.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.


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