Yahoo Finance Microchip Technology (MCHP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Microchip Technology (MCHP) closed at $72.99, marking a +1.66% move from the previous day. This move outpaced the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 4.46%.
Heading into today, shares of the chipmaker had lost 13.26% over the past month, lagging the Computer and Technology sector's gain of 2.72% and the S&P 500's gain of 4.04% in that time.
Investors will be hoping for strength from Microchip Technology as it approaches its next earnings release, which is expected to be May 4, 2023. The company is expected to report EPS of $1.62, up 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 20.42% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Microchip Technology. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Microchip Technology is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Microchip Technology is holding a Forward P/E ratio of 11.65. For comparison, its industry has an average Forward P/E of 16.75, which means Microchip Technology is trading at a discount to the group.
Investors should also note that MCHP has a PEG ratio of 0.69 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
