Microchip Technology (MCHP) Declines More Than Market: Some Information for Investors
Microchip Technology (MCHP) ended the recent trading session at $87.65, demonstrating a -0.44% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.27%.
The the stock of chipmaker has risen by 6.28% in the past month, leading the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
Investors will be eagerly watching for the performance of Microchip Technology in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.57, indicating a 65.24% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.33 billion, indicating a 40.57% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.92 per share and a revenue of $7.68 billion, signifying shifts of -18.27% and -8.93%, respectively, from the last year.
Any recent changes to analyst estimates for Microchip Technology should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.88% decrease. Microchip Technology is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Microchip Technology is presently trading at a Forward P/E ratio of 17.9. This denotes a discount relative to the industry's average Forward P/E of 33.01.
It is also worth noting that MCHP currently has a PEG ratio of 1.48. 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. The Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.79 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
