Back to top

Image: Bigstock

Diodes (DIOD) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Diodes (DIOD - Free Report) closed at $42.68 in the latest trading session, marking a -0.67% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.44%.

Coming into today, shares of the semiconductor components maker had gained 22.18% in the past month. In that same time, the Computer and Technology sector gained 6.51%, while the S&P 500 gained 4%.

Wall Street will be looking for positivity from DIOD as it approaches its next earnings report date. This is expected to be August 5, 2019. The company is expected to report EPS of $0.75, up 29.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $322 million, up 5.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $1.25 billion, which would represent changes of +17.65% and +3.02%, respectively, from the prior year.

Investors should also note any 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #3 (Hold).

Digging into valuation, DIOD currently has a Forward P/E ratio of 15.35. For comparison, its industry has an average Forward P/E of 19.6, which means DIOD is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Diodes Incorporated (DIOD) - free report >>

Published in