Microchip Technology (MCHP) Stock Moves -0.29%: What You Should Know
Microchip Technology (MCHP) ended the recent trading session at $85.16, demonstrating a -0.29% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 0.19%.
The chipmaker's stock has dropped by 6.46% in the past month, falling short of the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Microchip Technology in its forthcoming earnings report. The company is scheduled to release its earnings on February 1, 2024. The company is forecasted to report an EPS of $1.06, showcasing a 32.05% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.79 billion, down 17.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.27 per share and a revenue of $8.02 billion, demonstrating changes of -12.46% and -4.99%, respectively, from the preceding 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.48% decrease. Microchip Technology presently features a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Microchip Technology is presently being traded at a Forward P/E ratio of 16.2. This denotes a discount relative to the industry's average Forward P/E of 26.94.
We can additionally observe that MCHP currently boasts a PEG ratio of 1.34. 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 had an average PEG ratio of 3.52 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
