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Microchip Technology (MCHP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $77.43, marking a +0.45% move from the previous day. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the chipmaker had lost 2.89% over the past month. This has lagged the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% in that time.
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 $1.62 per share, which would represent 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 +8.01%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Microchip Technology is currently a Zacks Rank #3 (Hold).
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 12.71. Its industry sports an average Forward P/E of 17.87, so we one might conclude that Microchip Technology is trading at a discount comparatively.
Investors should also note that MCHP has a PEG ratio of 1.05 right now. 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 2.11 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 201, which puts it in the bottom 21% 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.
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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Microchip Technology (MCHP - Free Report) closed at $77.43, marking a +0.45% move from the previous day. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the chipmaker had lost 2.89% over the past month. This has lagged the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% in that time.
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 $1.62 per share, which would represent 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 +8.01%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Microchip Technology is currently a Zacks Rank #3 (Hold).
Investors should also note Microchip Technology's current valuation metrics, including its Forward P/E ratio of 12.71. Its industry sports an average Forward P/E of 17.87, so we one might conclude that Microchip Technology is trading at a discount comparatively.
Investors should also note that MCHP has a PEG ratio of 1.05 right now. 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 2.11 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 201, which puts it in the bottom 21% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.