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

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Diodes (DIOD - Free Report) closed at $94.88 in the latest trading session, marking a -0.36% move from the prior day. This move lagged the S&P 500's daily gain of 0.15%.

Heading into today, shares of the semiconductor components maker had gained 1.37% over the past month, outpacing the Computer and Technology sector's gain of 0.81% and the S&P 500's loss of 0.58% in that time.

DIOD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.38, up 122.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Any recent changes to analyst estimates for DIOD should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DIOD currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, DIOD is holding a Forward P/E ratio of 20.02. This valuation marks a discount compared to its industry's average Forward P/E of 21.17.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% 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.

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


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