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Microchip Technology (MCHP) is a Top-Ranked Value Stock: Should You Buy?

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Microchip Technology (MCHP)

Microchip Technology Inc. develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks.

MCHP is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 12.1X for the current fiscal year compared to the Semiconductor - Analog and Mixed industry's P/E of 17.6X. Additionally, MCHP has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 9.8X. Value investors should also note MCHP's Price/Sales ratio of 4.9X.

A company's earnings performance is important for value investors as well. For fiscal 2024, eight analysts revised their earnings estimate higher in the last 60 days for MCHP, while the Zacks Consensus Estimate has increased $0.07 to $6.23 per share. MCHP also holds an average earnings surprise of 1.4%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding MCHP to their portfolios.

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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

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