Microchip Technology (MCHP) Dips More Than Broader Market: What You Should Know
Microchip Technology (MCHP) ended the recent trading session at $92.20, demonstrating a -0.82% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the chipmaker had gained 13.15% over the past month. This has outpaced the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21% in that time.
The investment community will be closely monitoring the performance of Microchip Technology in its forthcoming earnings report. The company is predicted to post an EPS of $1.13, indicating a 27.56% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, down 14.15% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $8.14 billion, which would represent changes of -10.47% and -3.57%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.09% lower. Microchip Technology presently features a Zacks Rank of #5 (Strong Sell).
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 17.25. Its industry sports an average Forward P/E of 28.41, so one might conclude that Microchip Technology is trading at a discount comparatively.
Meanwhile, MCHP's PEG ratio is currently 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 4.17 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
