Microchip Technology (MCHP) Declines More Than Market: Some Information for Investors
Microchip Technology (MCHP) ended the recent trading session at $90.18, demonstrating a -0.73% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.56%.
The the stock of chipmaker has risen by 8.87% in the past month, leading the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 5.24%.
Market participants will be closely following the financial results of Microchip Technology in its upcoming release. It is anticipated that the company will report an EPS of $1.13, marking a 27.56% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, down 14.15% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.39 per share and a revenue of $8.14 billion, demonstrating changes of -10.47% and -3.57%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Microchip Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.09% lower within the past month. Microchip Technology is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Microchip Technology has a Forward P/E ratio of 16.86 right now. This signifies a discount in comparison to the average Forward P/E of 28.54 for its industry.
We can also see that MCHP currently has a PEG ratio of 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 3.95.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 225, placing it within the bottom 11% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
