Semtech (SMTC) closed at $89.52 in the latest trading session, marking a -1.17% move from the prior day. This move lagged the S&P 500’s daily gain of 0.17%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
Coming into today, shares of the chipmaker had gained 12.97% in the past month. In that same time, the Computer and Technology sector gained 4.39%, while the S&P 500 gained 3.19%.
Wall Street will be looking for positivity from Semtech as it approaches its next earnings report date. This is expected to be December 1, 2021. The company is expected to report EPS of $0.71, up 51.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $192.92 million, up 25.21% from the year-ago period.
SMTC’s full-year Zacks Consensus Estimates are calling for earnings of $2.54 per share and revenue of $735.71 million. These results would represent year-over-year changes of +45.14% and +23.62%, respectively.
Any recent changes to analyst estimates for Semtech should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Semtech is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Semtech currently has a Forward P/E ratio of 35.72. This valuation marks a premium compared to its industry’s average Forward P/E of 25.73.
Meanwhile, SMTC’s PEG ratio is currently 2.86. 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. Semiconductor – Analog and Mixed stocks are, on average, holding a PEG ratio of 1.65 based on yesterday’s closing prices.
The Semiconductor – Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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