Semtech (SMTC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Semtech (SMTC) closed at $90.52, marking a +0.32% move from the previous day. This change outpaced the S&P 500's 0.09% gain on the day.
Prior to today's trading, shares of the chipmaker had gained 16.49% over the past month. This has outpaced the Computer and Technology sector's gain of 9.47% and the S&P 500's gain of 8.19% in that time.
Investors will be hoping for strength from SMTC as it approaches its next earnings release. In that report, analysts expect SMTC to post earnings of $0.71 per share. This would mark year-over-year growth of 51.06%. Meanwhile, our latest consensus estimate is calling for revenue of $192.92 million, up 25.21% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.54 per share and revenue of $735.71 million, which would represent changes of +45.14% and +23.62%, respectively, from the prior year.
Any recent changes to analyst estimates for SMTC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.76% lower. SMTC is currently a Zacks Rank #4 (Sell).
In terms of valuation, SMTC is currently trading at a Forward P/E ratio of 35.58. Its industry sports an average Forward P/E of 25.37, so we one might conclude that SMTC is trading at a premium comparatively.
Meanwhile, SMTC's PEG ratio is currently 2.85. 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Semtech Corporation (SMTC) : Free Stock Analysis Report
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