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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 $78.37, moving +0.41% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the chipmaker had lost 5.15% over the past month. This has lagged the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% 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%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for Microchip Technology should also be noted by investors. 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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 12.87. This valuation marks a discount compared to its industry's average Forward P/E of 18.24.
We can also see that MCHP currently has a PEG ratio of 1.07. 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 was holding an average PEG ratio of 2.17 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 109, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much 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 $78.37, moving +0.41% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the chipmaker had lost 5.15% over the past month. This has lagged the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% 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%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for Microchip Technology should also be noted by investors. 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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Microchip Technology currently has a Forward P/E ratio of 12.87. This valuation marks a discount compared to its industry's average Forward P/E of 18.24.
We can also see that MCHP currently has a PEG ratio of 1.07. 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 was holding an average PEG ratio of 2.17 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 109, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.