Monolithic Power (MPWR) closed the most recent trading day at $446.92, moving -0.06% from the previous trading session. This change lagged the S&P 500’s 1.06% gain on the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.18%.
Coming into today, shares of the chipmaker had lost 15.26% in the past month. In that same time, the Computer and Technology sector lost 4.33%, while the S&P 500 lost 1.14%.
Wall Street will be looking for positivity from Monolithic Power as it approaches its next earnings report date. On that day, Monolithic Power is projected to report earnings of $3.49 per share, which would represent year-over-year growth of 69.42%. Our most recent consensus estimate is calling for quarterly revenue of $490.45 million, up 51.6% from the year-ago period.
MPWR’s full-year Zacks Consensus Estimates are calling for earnings of $12.56 per share and revenue of $1.81 billion. These results would represent year-over-year changes of +68.59% and +50.19%, respectively.
Investors should also note any recent changes to analyst estimates for Monolithic Power. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Monolithic Power is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Monolithic Power has a Forward P/E ratio of 35.61 right now. For comparison, its industry has an average Forward P/E of 15.15, which means Monolithic Power is trading at a premium to the group.
It is also worth noting that MPWR currently has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Semiconductor – Analog and Mixed was holding an average PEG ratio of 0.81 at yesterday’s closing price.
The Semiconductor – Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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