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Why Microchip Technology (MCHP) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

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

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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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 boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Microchip Technology are trading at a forward earnings multiple of 12.7X, as well as a PEG Ratio of 0.8, a Price/Cash Flow ratio of 11.5X, and a Price/Sales ratio of 5.4X.

Many value investors pay close attention to a company's earnings as well. For MCHP, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $5.92 per share for 2023. Per share MCHP boasts an average earnings surprise of 3.6%.

MCHP should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
 
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Zacks Investment Research