Himax Tech (HIMX) Gains As Market Dips: What You Should Know
Himax Tech (HIMX) closed the most recent trading day at $8.63, moving +1.53% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Coming into today, shares of the fabless semiconductor company had gained 20.06% in the past month. In that same time, the Computer and Technology sector gained 4.43%, while the S&P 500 gained 4.12%.
HIMX will be looking to display strength as it nears its next earnings release, which is expected to be February 4, 2021. In that report, analysts expect HIMX to post earnings of $0.18 per share. This would mark year-over-year growth of 1700%. Meanwhile, our latest consensus estimate is calling for revenue of $275.80 million, up 57.66% from the prior-year quarter.
Any recent changes to analyst estimates for HIMX should also be noted by investors. 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 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 has moved 3.45% higher. HIMX is currently a Zacks Rank #2 (Buy).
Digging into valuation, HIMX currently has a Forward P/E ratio of 18.89. For comparison, its industry has an average Forward P/E of 22.88, which means HIMX is trading at a discount to the group.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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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