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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 $40.35, moving +0.75% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Heading into today, shares of the semiconductor components maker had gained 0.1% over the past month, lagging the Computer and Technology sector's gain of 4.15% and the S&P 500's gain of 4.17% in that time.

DIOD will be looking to display strength as it nears its next earnings release. In that report, analysts expect DIOD to post earnings of $0.78 per share. This would mark year-over-year growth of 14.71%. Our most recent consensus estimate is calling for quarterly revenue of $324 million, up 0.95% from the year-ago period.

DIOD's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $1.25 billion. These results would represent year-over-year changes of +19.75% and +3.2%, respectively.

Investors might also notice recent changes to analyst estimates for DIOD. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. DIOD is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that DIOD has a Forward P/E ratio of 14.05 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.98.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.


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