Diodes (DIOD) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
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In the latest trading session, Diodes (DIOD) closed at $90.59, marking a -1.06% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Heading into today, shares of the semiconductor components maker had gained 2.34% over the past month, outpacing the Computer and Technology sector's gain of 1.92% and lagging the S&P 500's gain of 2.67% in that time.

Investors will be hoping for strength from Diodes as it approaches its next earnings release. On that day, Diodes is projected to report earnings of $1.55 per share, which would represent year-over-year growth of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $481.1 million, up 16.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.47 per share and revenue of $1.95 billion, which would represent changes of +24.9% and +8.17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Diodes. Recent revisions tend to reflect the latest 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. 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 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 remained stagnant. Diodes is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Diodes currently has a Forward P/E ratio of 14.15. For comparison, its industry has an average Forward P/E of 21.03, which means Diodes is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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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