Microchip Technology (MCHP) Rises Higher Than Market: Key Facts
The latest trading session saw Microchip Technology (MCHP) ending at $89.88, denoting a +1.5% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.26%.
Coming into today, shares of the chipmaker had gained 7.39% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 gained 3.01%.
The upcoming earnings release of Microchip Technology will be of great interest to investors. 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. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.39 per share and a revenue of $8.14 billion, representing changes of -10.47% and -3.57%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Microchip Technology. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.09% decrease. Right now, Microchip Technology possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 16.43. This signifies a discount in comparison to the average Forward P/E of 27.29 for its industry.
It is also worth noting that MCHP currently has a PEG ratio of 1.36. 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 3.83 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 18% 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.
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
