Diodes (DIOD) closed at $109.81 in the latest trading session, marking a +0.8% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.26%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the semiconductor components maker had gained 0.36% over the past month, lagging the Computer and Technology sector’s gain of 2.19% and the S&P 500’s gain of 4.82% in that time.
Investors will be hoping for strength from Diodes as it approaches its next earnings release. The company is expected to report EPS of $1.45, up 95.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $476.2 million, up 35.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.06 per share and revenue of $1.8 billion, which would represent changes of +115.32% and +46.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Diodes. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Diodes is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Diodes has a Forward P/E ratio of 21.53 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 25.37.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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