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

Monolithic Power (MPWR) closed the most recent trading day at $367.35, moving -1.05% from the previous trading session. This change lagged the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq gained 0.02%.

Coming into today, shares of the chipmaker had lost 22.11% in the past month. In that same time, the Computer and Technology sector lost 13.11%, while the S&P 500 lost 10.4%.

Investors will be hoping for strength from Monolithic Power as it approaches its next earnings release. On that day, Monolithic Power is projected to report earnings of $3.49 per share, which would represent year-over-year growth of 69.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $490.45 million, up 51.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.56 per share and revenue of $1.81 billion. These totals would mark changes of +68.59% and +50.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Monolithic Power. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Monolithic Power currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Monolithic Power currently has a Forward P/E ratio of 29.56. This valuation marks a premium compared to its industry's average Forward P/E of 13.71.

It is also worth noting that MPWR currently has a PEG ratio of 1.18. 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. MPWR's industry had an average PEG ratio of 0.75 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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