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Can Microchip Technology (MCHP) Run Higher on Strong Earnings Estimate Revisions?

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Microchip Technology Incorporated (MCHP - Free Report) that develops, manufactures, and sells semiconductor products for various embedded control applications could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on MCHP’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Microchip Technologycould be a solid choice for investors.

Current Quarter Estimates for MCHP

In the past 30 days, four estimates have gone higher for Microchip Technologywhile none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 83 cents a share 30 days ago, to $1.00 today, a move of 20.5%.

Current Year Estimates for MCHP

Meanwhile, Microchip Technology’s current year figures are also looking quite promising, with four estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing/narrowing from $3.18 per share 30 days ago to $3.58 per share today, an increase of 12.6%.

Microchip Technology Incorporated Price and Consensus

Bottom Line

The stock has also started to move higher lately, adding 20.8% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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