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Diodes (DIOD) Stock Sinks As Market Gains: What You Should Know

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Diodes (DIOD - Free Report) closed the most recent trading day at $94.83, moving -1.69% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%.

Heading into today, shares of the semiconductor components maker had gained 9.65% over the past month, outpacing the Computer and Technology sector's gain of 1.96% and the S&P 500's loss of 0.37% in that time.

Wall Street will be looking for positivity from DIOD as it approaches its next earnings report date. In that report, analysts expect DIOD to post earnings of $1.38 per share. This would mark year-over-year growth of 122.58%. Our most recent consensus estimate is calling for quarterly revenue of $467.6 million, up 51.1% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $1.77 billion. These totals would mark changes of +102.55% and +43.73%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for DIOD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection remained stagnant. DIOD currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, DIOD is currently trading at a Forward P/E ratio of 20.29. This valuation marks a premium compared to its industry's average Forward P/E of 20.11.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 118, which puts it in the top 47% 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.

To follow DIOD in the coming trading sessions, be sure to utilize Zacks.com.


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