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Microchip Technology (MCHP) Gains But Lags Market: What You Should Know
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Microchip Technology (MCHP - Free Report) closed at $74.38 in the latest trading session, marking a +0.55% move from the prior day. The stock lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.61%.
Coming into today, shares of the chipmaker had gained 9.16% in the past month. In that same time, the Computer and Technology sector gained 4.13%, while the S&P 500 gained 5.64%.
Wall Street will be looking for positivity from Microchip Technology as it approaches its next earnings report date. On that day, Microchip Technology is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 34.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 24.06% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Microchip Technology is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Microchip Technology is holding a Forward P/E ratio of 14.2. This valuation marks a discount compared to its industry's average Forward P/E of 18.35.
We can also see that MCHP currently has a PEG ratio of 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCHP's industry had an average PEG ratio of 1.05 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microchip Technology (MCHP) Gains But Lags Market: What You Should Know
Microchip Technology (MCHP - Free Report) closed at $74.38 in the latest trading session, marking a +0.55% move from the prior day. The stock lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.61%.
Coming into today, shares of the chipmaker had gained 9.16% in the past month. In that same time, the Computer and Technology sector gained 4.13%, while the S&P 500 gained 5.64%.
Wall Street will be looking for positivity from Microchip Technology as it approaches its next earnings report date. On that day, Microchip Technology is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 34.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 24.06% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Microchip Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Microchip Technology is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Microchip Technology is holding a Forward P/E ratio of 14.2. This valuation marks a discount compared to its industry's average Forward P/E of 18.35.
We can also see that MCHP currently has a PEG ratio of 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCHP's industry had an average PEG ratio of 1.05 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.