In the latest trading session, MaxLinear (MXL) closed at $37.70, marking a -1.13% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%.
Coming into today, shares of the chipmaker had gained 4.98% in the past month. In that same time, the Computer and Technology sector gained 2.81%, while the S&P 500 gained 1.68%.
MXL will be looking to display strength as it nears its next earnings release. On that day, MXL is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 455.56%. Our most recent consensus estimate is calling for quarterly revenue of $205.11 million, up 214.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.09 per share and revenue of $828.93 million, which would represent changes of +137.5% and +73.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MXL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MXL is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, MXL is currently trading at a Forward P/E ratio of 18.24. For comparison, its industry has an average Forward P/E of 26.41, which means MXL is trading at a discount to the group.
Also, we should mention that MXL has a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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