In the latest trading session, Himax Tech (HIMX) closed at $3.74, marking a +1.63% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.33%. At the same time, the Dow lost 2.24%, and the tech-heavy Nasdaq lost 3.05%.
Heading into today, shares of the fabless semiconductor company had lost 23.65% over the past month, lagging the Computer and Technology sector's loss of 2% and the S&P 500's loss of 1.93% in that time.
Investors will be hoping for strength from HIMX as it approaches its next earnings release, which is expected to be February 12, 2019. On that day, HIMX is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $190.90 million, up 5.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.10 per share and revenue of $723.55 million, which would represent changes of -50% and +5.6%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for HIMX. 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.
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. Within the past 30 days, our consensus EPS projection has moved 350% higher. HIMX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, HIMX is currently trading at a Forward P/E ratio of 36.8. For comparison, its industry has an average Forward P/E of 16.65, which means HIMX is trading at a premium to the group.
We can also see that HIMX currently has a PEG ratio of 1.47. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 27% 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.