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Diodes (DIOD) Outpaces Stock Market Gains: What You Should Know

·2 min read

Diodes (DIOD) closed the most recent trading day at $106.49, moving +1.28% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.38%.

Coming into today, shares of the semiconductor components maker had lost 2.45% in the past month. In that same time, the Computer and Technology sector lost 3.79%, while the S&P 500 lost 0.91%.

Wall Street will be looking for positivity from Diodes as it approaches its next earnings report date. In that report, analysts expect Diodes to post earnings of $1.45 per share. This would mark year-over-year growth of 95.95%. Meanwhile, our latest consensus estimate is calling for revenue of $476.2 million, up 35.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.06 per share and revenue of $1.8 billion, which would represent changes of +115.32% and +46.53%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Diodes. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 remained stagnant. Diodes is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Diodes has a Forward P/E ratio of 20.78 right now. This valuation marks a discount compared to its industry's average Forward P/E of 24.08.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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