Microchip Technology (MCHP) Rises As Market Takes a Dip: Key Facts
The most recent trading session ended with Microchip Technology (MCHP) standing at $90.57, reflecting a +1.95% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.
The chipmaker's stock has climbed by 3.98% in the past month, exceeding the Computer and Technology sector's gain of 1.42% and the S&P 500's gain of 2.7%.
The investment community will be closely monitoring the performance of Microchip Technology in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.57, reflecting a 65.24% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.33 billion, down 40.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.92 per share and a revenue of $7.68 billion, demonstrating changes of -18.27% and -8.93%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Microchip Technology. These revisions help to show the ever-changing nature of near-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. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.88% decrease. Currently, Microchip Technology is carrying a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Microchip Technology is holding a Forward P/E ratio of 18.07. This denotes a discount relative to the industry's average Forward P/E of 32.52.
It's also important to note that MCHP currently trades at a PEG ratio of 1.5. 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 3.01 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
