Microchip Technology MCHP shares ended the last trading session 9.9% higher at $90.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 26.6% gain over the past four weeks.
Microchip Technology benefits from rising demand across AI-driven data centers, 5G networks, automotive, and industrial systems. An expanding portfolio is a key catalyst.
This chipmaker is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +354.6%. Revenues are expected to be $1.27 billion, up 30.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Microchip Tech, the consensus EPS estimate for the quarter has been revised 2.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MCHP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Microchip Tech is a member of the Zacks Semiconductor - Analog and Mixed industry. One other stock in the same industry, Semtech SMTC, finished the last trading session 1.8% higher at $105.34. SMTC has returned 29.3% over the past month.
For Semtech, the consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $0.45. This represents a change of +18.4% from what the company reported a year ago. Semtech currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
