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Microchip Technology (MCHP) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $82.71, marking a -1.28% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Coming into today, shares of the chipmaker had gained 1.43% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
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 $1.54 per share, which would represent year-over-year growth of 14.07%. Our most recent consensus estimate is calling for quarterly revenue of $2.22 billion, up 20.42% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Microchip Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 13.96. This represents a discount compared to its industry's average Forward P/E of 18.6.
Investors should also note that MCHP has a PEG ratio of 0.83 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. MCHP's industry had an average PEG ratio of 1.51 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 102, which puts it in the top 41% 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.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.
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Microchip Technology (MCHP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $82.71, marking a -1.28% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Coming into today, shares of the chipmaker had gained 1.43% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
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 $1.54 per share, which would represent year-over-year growth of 14.07%. Our most recent consensus estimate is calling for quarterly revenue of $2.22 billion, up 20.42% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Microchip Technology. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 13.96. This represents a discount compared to its industry's average Forward P/E of 18.6.
Investors should also note that MCHP has a PEG ratio of 0.83 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. MCHP's industry had an average PEG ratio of 1.51 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 102, which puts it in the top 41% 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.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.