Microchip Technology (MCHP) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Microchip Technology (MCHP) standing at $88.08, reflecting a -0.63% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.82%.
Prior to today's trading, shares of the chipmaker had gained 8.61% over the past month. This has outpaced the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Microchip Technology in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.57, reflecting a 65.24% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.33 billion, indicating a 40.57% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.92 per share and a revenue of $7.68 billion, indicating changes of -18.27% and -8.93%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Microchip Technology. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.88% lower. As of now, Microchip Technology holds a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Microchip Technology is currently exchanging hands at a Forward P/E ratio of 18.03. This denotes a discount relative to the industry's average Forward P/E of 32.86.
We can additionally observe that MCHP currently boasts a PEG ratio of 1.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MCHP's industry had an average PEG ratio of 2.83 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 198, placing it within the bottom 22% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
