Microchip Technology (MCHP) Advances But Underperforms Market: Key Facts
Microchip Technology (MCHP) closed the latest trading day at $85.44, indicating a +0.12% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
Shares of the chipmaker have depreciated by 4.36% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of Microchip Technology in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 1, 2024. The company is forecasted to report an EPS of $1.09, showcasing a 30.13% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.86 billion, indicating a 14.15% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.36 per share and a revenue of $8.07 billion, signifying shifts of -10.96% and -4.34%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Microchip Technology. 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.69% fall in the Zacks Consensus EPS estimate. Currently, Microchip Technology is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Microchip Technology is currently exchanging hands at a Forward P/E ratio of 15.93. This indicates a discount in contrast to its industry's Forward P/E of 27.76.
One should further note that MCHP currently holds a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 3.49.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 229, finds itself in the bottom 10% echelons of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
