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Microchip Technology (MCHP) Outpaces Stock Market Gains: What You Should Know
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Microchip Technology (MCHP - Free Report) closed at $68.19 in the latest trading session, marking a +0.49% move from the prior day. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.43%.
Coming into today, shares of the chipmaker had lost 8.77% in the past month. In that same time, the Computer and Technology sector lost 11.75%, while the S&P 500 lost 8.48%.
Microchip Technology will be looking to display strength as it nears its next earnings release, which is expected to be May 9, 2022. The company is expected to report EPS of $1.25, up 34.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.82 billion, up 24.06% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Microchip Technology. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.16% lower within the past month. Microchip Technology is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 13.05. This valuation marks a discount compared to its industry's average Forward P/E of 18.43.
Investors should also note that MCHP has a PEG ratio of 0.64 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.7 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microchip Technology (MCHP) Outpaces Stock Market Gains: What You Should Know
Microchip Technology (MCHP - Free Report) closed at $68.19 in the latest trading session, marking a +0.49% move from the prior day. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.43%.
Coming into today, shares of the chipmaker had lost 8.77% in the past month. In that same time, the Computer and Technology sector lost 11.75%, while the S&P 500 lost 8.48%.
Microchip Technology will be looking to display strength as it nears its next earnings release, which is expected to be May 9, 2022. The company is expected to report EPS of $1.25, up 34.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.82 billion, up 24.06% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Microchip Technology. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.16% lower within the past month. Microchip Technology is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 13.05. This valuation marks a discount compared to its industry's average Forward P/E of 18.43.
Investors should also note that MCHP has a PEG ratio of 0.64 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.7 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.