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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 the most recent trading day at $79.46, moving +0.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Prior to today's trading, shares of the chipmaker had lost 3.66% over the past month. This has lagged the Computer and Technology sector's gain of 1.08% and the S&P 500's loss of 0.73% in that time.
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, our latest consensus estimate is calling for revenue of $2.26 billion, up 8.95% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $8.69 billion. These totals would mark changes of +0.83% and +3.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microchip Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.31% lower within the past month. Microchip Technology is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 12.99. This valuation marks a discount compared to its industry's average Forward P/E of 18.84.
We can also see that MCHP currently has a PEG ratio of 1.08. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts 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.
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 the most recent trading day at $79.46, moving +0.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.
Prior to today's trading, shares of the chipmaker had lost 3.66% over the past month. This has lagged the Computer and Technology sector's gain of 1.08% and the S&P 500's loss of 0.73% in that time.
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, our latest consensus estimate is calling for revenue of $2.26 billion, up 8.95% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $8.69 billion. These totals would mark changes of +0.83% and +3.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Microchip Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.31% lower within the past month. Microchip Technology is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Microchip Technology is currently trading at a Forward P/E ratio of 12.99. This valuation marks a discount compared to its industry's average Forward P/E of 18.84.
We can also see that MCHP currently has a PEG ratio of 1.08. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.