We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microchip Technology (MCHP) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Microchip Technology (MCHP - Free Report) closed the most recent trading day at $78.78, moving -0.4% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the chipmaker had lost 5.05% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 1.27%.
Microchip Technology will be looking to display strength as it nears its next earnings release. In that report, analysts expect Microchip Technology to post earnings of $1.62 per share. This would mark year-over-year growth of 10.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.26 billion, up 8.95% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $6.07 per share and revenue of $8.69 billion. These results would represent year-over-year changes of +0.83% and +3.03%, respectively.
Investors might also notice recent changes to analyst estimates for Microchip Technology. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.31% lower. Microchip Technology currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Microchip Technology is holding a Forward P/E ratio of 13.04. This represents a discount compared to its industry's average Forward P/E of 18.94.
Meanwhile, MCHP's PEG ratio is currently 1.08. 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 2.37 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 185, putting it in the bottom 27% 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.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Microchip Technology (MCHP) Stock Sinks As Market Gains: What You Should Know
Microchip Technology (MCHP - Free Report) closed the most recent trading day at $78.78, moving -0.4% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the chipmaker had lost 5.05% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 1.27%.
Microchip Technology will be looking to display strength as it nears its next earnings release. In that report, analysts expect Microchip Technology to post earnings of $1.62 per share. This would mark year-over-year growth of 10.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.26 billion, up 8.95% from the year-ago period.
MCHP's full-year Zacks Consensus Estimates are calling for earnings of $6.07 per share and revenue of $8.69 billion. These results would represent year-over-year changes of +0.83% and +3.03%, respectively.
Investors might also notice recent changes to analyst estimates for Microchip Technology. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.31% lower. Microchip Technology currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Microchip Technology is holding a Forward P/E ratio of 13.04. This represents a discount compared to its industry's average Forward P/E of 18.94.
Meanwhile, MCHP's PEG ratio is currently 1.08. 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 2.37 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 185, putting it in the bottom 27% 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.
To follow MCHP in the coming trading sessions, be sure to utilize Zacks.com.