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Diodes (DIOD) Outpaces Stock Market Gains: What You Should Know

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Diodes (DIOD - Free Report) closed the most recent trading day at $36.85, moving +0.96% from the previous trading session. This change outpaced the S&P 500's 0.77% gain on the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.75%.

Coming into today, shares of the semiconductor components maker had gained 9.35% in the past month. In that same time, the Computer and Technology sector gained 8.17%, while the S&P 500 gained 8.19%.

Wall Street will be looking for positivity from DIOD as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 29.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $322 million, up 5.89% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $1.25 billion. These totals would mark changes of +17.65% and +3.02%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DIOD. Recent revisions tend to reflect the latest 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. DIOD is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, DIOD currently has a Forward P/E ratio of 13.04. For comparison, its industry has an average Forward P/E of 18.61, which means DIOD is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

To follow DIOD in the coming trading sessions, be sure to utilize Zacks.com.


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