MaxLinear (MXL) Outpaces Stock Market Gains: What You Need to Know
IIn the last trading session, MaxLinear (MXL) closed at $60.20, marking a +1.96% move from the previous day. That move topped the S&P 500’s 1.17% daily gain. Meanwhile, the Dow Jones gained 0.8% and the Nasdaq, a technology-heavy index, added 0.18%.
Prior to today’s trading, shares of the chipmaker had lost 4.14% over the past month. That was less than the IT & Technology sector’s 1.7% loss and the S&P 500’s 0.88% gain during that period.
Wall Street will be looking for positivity from MaxLinear as it nears its next earnings report date. The company is expected to post EPS of $0.91, up 65.45% from the prior year quarter. Meanwhile, Zacks consensus estimate for revenue calls for net sales of $260.08 million, up 24.23% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $3.71 per share and revenue of $1.07 billion, which would represent swings of +37.92% and +19, 42%, respectively, compared to the previous year.
It is also important to note recent changes to analyst estimates for MaxLinear. These revisions generally reflect the latest short-term trading trends, which may change frequently. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success, with No. 1 stocks delivering an average annual return of +25% since 1988. Zacks Consensus’ EPS estimate has remained flat over the past month. MaxLinear currently sports a Zacks rank of #1 (Strong Buy).
Valuation is also important, so investors should note that MaxLinear has a Forward P/E ratio of 15.9 at this time. This valuation marks a discount compared to the average Forward P/E of its sector of 18.4.
Meanwhile, MXL’s PEG ratio is currently 0.8. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The semiconductor industry – analog and mixed currently had an average PEG ratio of 1.1 at yesterday’s close.
The semiconductor industry – analog and mixed is part of the computer and technology sector. This group has a Zacks industry ranking of 18, which places it in the top 8% of over 250 industries.
The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know our top 10 picks for all of 2022?
From its creation in 2012 to 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% vs. +348.7% for the S&P 500. Now our research director has combed through 4,000 companies covered by the Zacks Ranking and selected the top 10 tickers to buy and keep. Don’t miss your chance to enter…because the sooner you do, the better your chances of winning.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.