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

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Diodes (DIOD - Free Report) closed at $91.75 in the latest trading session, marking a +1.28% move from the prior day. This move outpaced the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 0.87%.

Coming into today, shares of the semiconductor components maker had gained 1.25% in the past month. In that same time, the Computer and Technology sector gained 1.42%, while the S&P 500 gained 2.65%.

Wall Street will be looking for positivity from Diodes as it approaches its next earnings report date. On that day, Diodes is projected to report earnings of $1.55 per share, which would represent year-over-year growth of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $481.1 million, up 16.46% from the year-ago period.

DIOD's full-year Zacks Consensus Estimates are calling for earnings of $6.47 per share and revenue of $1.95 billion. These results would represent year-over-year changes of +24.9% and +8.17%, respectively.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Diodes is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Diodes is currently trading at a Forward P/E ratio of 14. Its industry sports an average Forward P/E of 21, so we one might conclude that Diodes is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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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