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

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Diodes (DIOD - Free Report) closed the most recent trading day at $90.01, moving +1.47% from the previous trading session. This change outpaced the S&P 500's 0.52% gain on the day. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 0.37%.

Heading into today, shares of the semiconductor components maker had lost 17.36% over the past month, lagging the Computer and Technology sector's loss of 10.84% and the S&P 500's loss of 6.51% in that time.

Wall Street will be looking for positivity from Diodes as it approaches its next earnings report date. This is expected to be February 9, 2022. In that report, analysts expect Diodes to post earnings of $1.45 per share. This would mark year-over-year growth of 95.95%. Our most recent consensus estimate is calling for quarterly revenue of $476.2 million, up 35.91% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Diodes. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Diodes is currently a Zacks Rank #3 (Hold).

Digging into valuation, Diodes currently has a Forward P/E ratio of 14.86. This represents a discount compared to its industry's average Forward P/E of 18.21.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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