Cypress Semiconductor (CY) closed the most recent trading day at $17.03, moving +0.03% from the previous trading session. The stock trading in line with S&P 500. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, added 0.15%.
Prior to today's trading, shares of the chipmaker had lost 3.35% over the past month. This has lagged the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.98% in that time.
Wall Street will be looking for positivity from CY as it approaches its next earnings report date. This is expected to be October 25, 2018. The company is expected to report EPS of $0.38, up 40.74% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $669.62 million, up 10.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $2.53 billion, which would represent changes of +50.56% and +8.5%, respectively, from the prior year.
Any recent changes to analyst estimates for CY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CY currently has a Zacks Rank of #2 (Buy).
Investors should also note CY's current valuation metrics, including its Forward P/E ratio of 12.73. For comparison, its industry has an average Forward P/E of 13.83, which means CY is trading at a discount to the group.
It is also worth noting that CY currently has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Communications industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Semiconductor - Communications industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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