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MaxLinear (MXL) Dips More Than Broader Markets: What You Should Know

·3 min read

MaxLinear (MXL) closed at $39.92 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the chipmaker had gained 16.94% over the past month. This has outpaced the Computer and Technology sector's gain of 6.01% and the S&P 500's gain of 1.35% in that time.

Wall Street will be looking for positivity from MXL as it approaches its next earnings report date. The company is expected to report EPS of $0.50, up 455.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $205.11 million, up 214.49% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.09 per share and revenue of $828.93 million. These totals would mark changes of +137.5% and +73.2%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MXL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. MXL is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, MXL is holding a Forward P/E ratio of 19.26. Its industry sports an average Forward P/E of 26.48, so we one might conclude that MXL is trading at a discount comparatively.

Meanwhile, MXL's PEG ratio is currently 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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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