Infineon Technologies AG (IFNNY) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, Infineon Technologies AG (IFNNY) reached $37.32, with a -1.63% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Shares of the company have depreciated by 10.18% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48%.
The investment community will be paying close attention to the earnings performance of Infineon Technologies AG in its upcoming release. The company is predicted to post an EPS of $0.50, indicating a 23.08% decline compared to the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.52 per share and revenue of $18.19 billion, which would represent changes of -10.95% and +4.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Infineon Technologies AG. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. Right now, Infineon Technologies AG possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Infineon Technologies AG is presently trading at a Forward P/E ratio of 15.07. For comparison, its industry has an average Forward P/E of 30.2, which means Infineon Technologies AG is trading at a discount to the group.
We can additionally observe that IFNNY currently boasts a PEG ratio of 2.78. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 3.12.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 109, positioning it in the top 44% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Infineon Technologies AG (IFNNY) : Free Stock Analysis Report
