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Magnachip (MX) Stock Moves -0.81%: What You Should Know

Zacks Equity Research
·3 mins read

Magnachip (MX) closed the most recent trading day at $10.96, moving -0.81% from the previous trading session. This change was narrower than the S&P 500's daily loss of 4.41%. Elsewhere, the Dow lost 4.44%, while the tech-heavy Nasdaq lost 4.41%.

Prior to today's trading, shares of the chip products maker had gained 0.45% over the past month. This has outpaced the Computer and Technology sector's loss of 10.44% and the S&P 500's loss of 12.16% in that time.

Investors will be hoping for strength from MX as it approaches its next earnings release. On that day, MX is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 125.86%. Our most recent consensus estimate is calling for quarterly revenue of $192 million, up 22% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.89 per share and revenue of $811 million, which would represent changes of +85.42% and +2.37%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 4.71% higher within the past month. MX is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that MX has a Forward P/E ratio of 12.42 right now. For comparison, its industry has an average Forward P/E of 21.22, which means MX is trading at a discount to the group.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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