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QuickLogic (QUIK) Stock Sinks As Market Gains: Here's Why

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QuickLogic (QUIK - Free Report) closed the most recent trading day at $9.77, moving -1.31% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.52%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.58%.

Shares of the maker of chips for mobile and portable electronics manufacturers have appreciated by 20.58% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.93% and the S&P 500's loss of 2.61%.

Market participants will be closely following the financial results of QuickLogic in its upcoming release. The company is expected to report EPS of $0.14, up 300% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.5 million, up 87.86% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.05 per share and a revenue of $21.3 million, demonstrating changes of +127.78% and +31.64%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for QuickLogic. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, QuickLogic is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, QuickLogic is holding a Forward P/E ratio of 198. This indicates a premium in contrast to its industry's Forward P/E of 27.65.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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