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Monolithic Power (MPWR) Dips More Than Broader Markets: What You Should Know

Monolithic Power (MPWR) closed at $410.84 in the latest trading session, marking a -1.63% move from the prior day. This change lagged the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.13%.

Heading into today, shares of the chipmaker had lost 15.05% over the past month, lagging the Computer and Technology sector's loss of 11.27% and the S&P 500's loss of 7.59% in that time.

Wall Street will be looking for positivity from Monolithic Power as it approaches its next earnings report date. In that report, analysts expect Monolithic Power to post earnings of $3.49 per share. This would mark year-over-year growth of 69.42%. Our most recent consensus estimate is calling for quarterly revenue of $490.45 million, up 51.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.56 per share and revenue of $1.81 billion, which would represent changes of +68.59% and +50.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Monolithic Power. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Monolithic Power is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Monolithic Power is holding a Forward P/E ratio of 33.26. This valuation marks a premium compared to its industry's average Forward P/E of 14.79.

We can also see that MPWR currently has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MPWR in the coming trading sessions, be sure to utilize

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