Infineon Technologies AG (IFNNY) Laps the Stock Market: Here's Why
In the latest trading session, Infineon Technologies AG (IFNNY) closed at $40, marking a +1.09% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.45%.
Shares of the company witnessed a gain of 26.22% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.9% and the S&P 500's gain of 4.91%.
The investment community will be closely monitoring the performance of Infineon Technologies AG in its forthcoming earnings report. The company's upcoming EPS is projected at $0.52, signifying a 20% drop compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.51 per share and a revenue of $18.51 billion, signifying shifts of -11.31% and +6.24%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Infineon Technologies AG. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.28% lower. At present, Infineon Technologies AG boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Infineon Technologies AG has a Forward P/E ratio of 15.75 right now. This signifies a discount in comparison to the average Forward P/E of 26.6 for its industry.
One should further note that IFNNY currently holds a PEG ratio of 1.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. IFNNY's industry had an average PEG ratio of 4.15 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 22% of over 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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Infineon Technologies AG (IFNNY) : Free Stock Analysis Report
