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Microchip Technology (MCHP) Stock Moves -0.98%: What You Should Know
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In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $64.73, marking a -0.98% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.71%. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the chipmaker had lost 5.43% over the past month, outpacing the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from Microchip Technology as it approaches its next earnings report date. The company is expected to report EPS of $1.44, up 34.58% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 25.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.70 per share and revenue of $8.14 billion, which would represent changes of +23.64% and +19.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microchip Technology. These revisions help to show the ever-changing nature of 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Microchip Technology is currently a Zacks Rank #3 (Hold).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 11.46. Its industry sports an average Forward P/E of 14.63, so we one might conclude that Microchip Technology is trading at a discount comparatively.
Meanwhile, MCHP's PEG ratio is currently 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.78 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 75, which puts it in the top 30% 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.
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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Microchip Technology (MCHP) Stock Moves -0.98%: What You Should Know
In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $64.73, marking a -0.98% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.71%. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the chipmaker had lost 5.43% over the past month, outpacing the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from Microchip Technology as it approaches its next earnings report date. The company is expected to report EPS of $1.44, up 34.58% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 25.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.70 per share and revenue of $8.14 billion, which would represent changes of +23.64% and +19.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Microchip Technology. These revisions help to show the ever-changing nature of 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Microchip Technology is currently a Zacks Rank #3 (Hold).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 11.46. Its industry sports an average Forward P/E of 14.63, so we one might conclude that Microchip Technology is trading at a discount comparatively.
Meanwhile, MCHP's PEG ratio is currently 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.78 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 75, which puts it in the top 30% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.