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MaxLinear (MXL) Outpaces Stock Market Gains: What You Should Know

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MaxLinear (MXL - Free Report) closed at $38.02 in the latest trading session, marking a +0.34% move from the prior day. This move outpaced the S&P 500's daily gain of 0.08%.

Heading into today, shares of the chipmaker had lost 2.04% over the past month, lagging the Computer and Technology sector's loss of 1.97% and the S&P 500's gain of 0.41% in that time.

Investors will be hoping for strength from MXL as it approaches its next earnings release. On that day, MXL is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 455.56%. Meanwhile, our latest consensus estimate is calling for revenue of $205.11 million, up 214.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.09 per share and revenue of $828.93 million, which would represent changes of +137.5% and +73.2%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MXL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 19.93% higher within the past month. MXL is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note MXL's current valuation metrics, including its Forward P/E ratio of 18.13. For comparison, its industry has an average Forward P/E of 26.58, which means MXL is trading at a discount to the group.

It is also worth noting that MXL currently has a PEG ratio of 0.91. 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. MXL's industry had an average PEG ratio of 2.1 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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