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Allegro MicroSystems ALGM shares have declined 30.2% year to date (YTD), underperforming the Zacks Electronics - Semiconductors industry’s return of 20.4% and the Zacks Computer and Technology sector’s appreciation of 17.6%.
ALGM’s shares have been suffering from lower consumer demand in the industrial and automotive end markets along with stiff competition and a challenging macroeconomic environment.
However, its continued efforts to rebalance inventory across the end markets coupled with an expanding portfolio is noteworthy.
But do these efforts make ALGM stock attractive for investors? Let’s analyze.
Allegro MicroSystems, Inc. Price and Consensus
Allegro MicroSystems, Inc. price-consensus-chart | Allegro MicroSystems, Inc. Quote
ALGM Expands Portfolio with New Sensors
Allegro MicroSystems’ expanding portfolio is helping it to penetrate markets like AI-related data centers, automotive powertrain systems and clean energy systems.
ALGM recently introduced two new XtremeSense TMR sensors, the CT455 and CT456, designed to enhance high-power density applications. These advanced sensors offer high-bandwidth and low-noise performance, which significantly improves energy efficiency and precision in current measurements. These are ideal for AI data centers and automotive powertrain systems.
ALGM’s latest ACS37220 is a high-power current sensor while ACS37041 stands out as the smallest leaded magnetic current sensor in the market. These new products represent a significant advancement over traditional discrete shunt resistors and operational amplifiers.
The new ACS37220 and ACS37041 are single-package sensors engineered to consolidate the functions of multiple components, offering enhanced reliability, efficiency, and reduced space requirements.
ALGM has also expanded its High Voltage Power-Thru portfolio with the introduction of the Power-Thru combo chip. This new solution includes the AHV85000 and AHV85040 isolated gate-driver ICs, which, when paired with external transformers, offer designers greater flexibility and enhanced power efficiency.
These latest solutions are ideal for clean energy applications such as solar inverters, xEV charging infrastructures, energy storage systems and data center power supply units.
ACS37030 and ACS37032 are its new high-bandwidth current sensors. These sensors support high-performance power conversion using GaN and SiC technologies, making them ideal for applications in electrified vehicles, clean energy solutions and data centers.
Allegro MicroSystems has expanded its Isolated Gate Driver Portfolio with the introduction of the AHV85111 Bipolar-Output Power-Thru IC. This new isolated gate-driver IC enhances safety features and simplifies the design of high-power energy conversion systems for e-Mobility and clean energy applications, including on-board chargers, DC-DC converters, solar inverters and data center power supplies.
Near-Term Headwinds Hurts ALGM Stock’s Prospects
A significant portion of Allegro’s revenue comes from selling magnetic sensors and power ICs to the automotive sector, particularly in the electric vehicle space. This compels ALGM to be highly dependent on the automotive market.
However, a Goldman Sachs report suggesting that the global EV market is experiencing a slow rate of growth could pose challenges for Allegro.
Allegro operates in an intensely competitive industry, which remains a major concern. It faces stiff competition from Analog Devices ADI, Monolithic Power Systems MPWR and Texas Instruments TXN in both magnetic sensor and power IC segments.
Analog Devices offers a range of magnetic sensors, including the ADAF1080, ADA4570-2, and ADA4571, as well as power ICs such as the ADP5070 and ADP5071. Texas Instruments provides magnetic sensors like the TMAG5233 and TMCS1133-Q1 alongside power ICs, including the TPS65251 and TPS65261. Monolithic also offers a selection of magnetic sensors, including the MPX5700 and MPXH6300, and power ICs such as the MPQ4569 and MPQ4572.
What Investors Should Do with ALGM Stock?
Allegro MicroSystems is actively expanding its portfolio with innovative products to strengthen its position in the chip manufacturing industry.
A challenging outlook for growth in the EV sector, which is a key market for ALGM, raises concerns about the company’s near-term prospects. Sluggish customer demand in the industrial end-market is a headwind.
For second-quarter fiscal 2025, ALGM expects total revenues to be between $182 million and $192 million.
The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $187.1 million, indicating a decline of 32.09% year over year.
The consensus mark for earnings is currently pegged at 6 cents per share, which has remained unchanged in the past 30 days.
The ALGM stock is not so cheap, as the Value Style Score of F suggests a stretched valuation at this moment.
Allegro MicroSystems currently carries Zacks Rank #4 (Sell), suggesting that it may be wise to stay away from the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Investment Research
The S&P 500 Index today is up by +0.59%, the Dow Jones Industrials Index is up by +0.81%, and the Nasdaq 100 Index is up by +0.42%.
Stocks today are moderately higher, with the S&P 500 and the Nasdaq 100 posting 2-week highs and the Dow Jones Industrials posting a 1-1/2 week high. Strength in chip stocks today is lifting the overall market. Also, a decline in bond yields today supports stocks on dovish comments from former New York Fed President Dudley, who said there’s “a strong case for a 50 bp rate cut” at next week’s FOMC meeting. Signs of easing price pressures are also bullish for bonds and stocks after today’s news showed the US Aug import price index ex-petroleum unexpectedly fell -0.1% m/m, weaker than expectations of a +0.2% m/m increase. Stocks extended their gains after the University of Michigan US Sep consumer sentiment index rose more than expected to a 4-month high, supporting the prospects for a soft landing.
The University of Michigan US Sep consumer sentiment index rose +1.1 to a 4-month high of 69.0, stronger than expectations of 68.5.
News on inflation expectations was mixed. The University of Michigan US Sep 1-year inflation expectations unexpectedly eased to a 3-3/4 year low of 2.7% from 2.8% in Aug. However, the Sep 5-10 year inflation expectations unexpectedly rose to a 10-month high of 3.1% from 3.0% in Aug.
Corporate news today is mixed for stocks. On the positive side, Uber Technologies is up more than +5% on the news it will be the sole supplier of driverless rides on Alphabet’s Waymo cars in Austin and Atlanta. Also, RH is up more than +22% and is boosting online retailers after reporting better-than-expected Q2 adjusted EPS. On the negative side, Adobe is down more than -8% after forecasting weaker-than-expected Q4 revenue. Also, Boeing is down -0.47% after the company’s workers in Seattle walked off the job for the first time since 2008.
The markets are discounting the chances at 100% for a -25 bp rate cut for the September 17-18 FOMC meeting and at 49% for a -50 bp rate cut at that meeting.
Overseas stock markets today settled mixed. The Euro Stoxx 50 rose to a 1-week high and is up +0.74%. China's Shanghai Composite fell to a 7-1/4 month low and closed down -0.48%. Japan's Nikkei Stock 225 closed down by +0.68%.
Interest Rates
December 10-year T-notes (ZNZ24) today are up +3 ticks. The 10-year T-note yield is down -1.3 bp to 3.661%. Dec T-notes are climbing today on dovish comments from former New Tork Fed President Dudley, who said “there’s a strong case for a 50 bp rate cut” at next week’s FOMC meeting. T-notes also found support after the Aug import price index ex-petroleum unexpectedly fell, a dovish factor for Fed policy. In addition, short covering is propping up T-notes as bond dealers cover short hedges put on during this week’s $119 billion Treasury auction slate of T-notes and T-bonds.
T-note prices fell back from their bet levels after the University of Michigan US Sep consumer sentiment index rose more than expected to a 4-month high. Also, an increase in inflation expectations undercut T-notes after the 10-year breakeven inflation rate rose to a 1-week high today at 2.089%.
European government bond yields today are mixed. The 10-year German bund yield is up +0.2 bp to 2.153%. The 10-year UK gilt is down -0.7 bp to 3.774%.
Eurozone Jul industrial production fell -0.3% m/m, right on expectations.
ECB President Lagarde said she is open to considering an interest rate cut in October if the Eurozone economy suffers a major setback, but a cut at the December ECB meeting is more likely as we will have more comprehensive information available on the economy by then.
ECB Governing Council member Holzmann said the October ECB meeting might not be the time for another rate cut, but there could be room for another rate cut at the December meeting.
ECB Governing Council member Kazaks said a slump in the Eurozone economy would be required for the ECB to cut interest rates at its next meeting in October.
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 47% for the October 17 meeting.
US Stock Movers
Chip stocks are climbing today to support gains in the broader market. Micron Technology is up more than +4%, and ON Semiconductor is up more than +3%. Also, Applied Materials , Microchip Technology , and Lam Research are up more than +2%. In addition, KLA Corp , Texas Instruments GlobalFoundries , NXP Semiconductors NV , and Intel are up more than +1%.
Uber Technologies is up more than +6% on news it will be the sole supplier of driverless rides on Alphabet’s Waymo cars in Austin and Atlanta that will begin next year.
ARM Holdings Plc is up more than +6% after Raymond James initiated coverage on the stock with a recommendation of outperform and a price target of $160.
Oracle is up more than +3% after raising its 2026 sales outlook to $66 billion from $65 billion, above the consensus of $64.5 billion, and forecasting annual revenue will climb to at least $104 billion in fiscal 2029.
RH is up more than +22% after reporting Q2 adjusted EPS of $1.69, stronger than the consensus of $1.60. Also, Wayfair is up more than +10%, and Etsy is up more than +8% to lead gainers in the S&P 500 on the news.
Summit Therapeutics is up more than +11%, adding to Thursday’s 20% surge after it raised $235 million from investors in a private placement on the heels of promising late-stage trial data from its lung cancer drug ivonescimab.
Vistra Corp is up more than +3% after Jeffries named the stock its top pick in the power sector with a buy recommendation and a price target of $99.
GE Vernova is up more than +4% after BMO Capital Markets initiated coverage on the stock with a recommendation of outperform and a price target of $245.
SL Green Realty is up more than +2% after Citigroup upgraded the stock to neutral from sell.
Adobe is down more than -8% to lead losers in the S&P 500 and Nasdaq 100 after forecasting Q4 revenue of $5.50 billion-$5.55 billion, below the consensus of $5.60 billion.
Boeing is down -0.47% to lead losers in the Dow Jones Industrials after the company’s workers in Seattle walked off the job for the first time since 2008.
Moderna is down more than -3%, adding to Thursday’s -12% plunge after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $70.
Garmin Ltd is down more than -7% after Barclays downgraded the stock to underweight from equal weight with a price target of $133.
GE Healthcare is down more than -1% after holder Morgan Stanley offered 10 million shares in a secondary underwritten public offering.
Axon Enterprise is down more than -1% on signs of insider selling after an SEC filing showed CFO Bagley sold $1.64 million of shares on Thursday.
Earnings Reports (9/13/2024)
Dakota Gold Corp (DC), Selectquote Inc (SLQT), Spire Global Inc (SPIR).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
The S&P 500 Index Thursday closed up by +0.75%, the Dow Jones Industrials Index closed up by +0.58%, and the Nasdaq 100 Index closed up by +0.97%.
Stocks on Thursday recovered from early losses and moved higher the rest of the session, with the S&P 500 and Dow Jones Industrials posting 1-week highs and the Nasdaq 100 posting a 1-1/2 week high. Positive corporate news lifted the overall market Thursday, as Warner Bos Discovery closed up more than +10% after it said its multiyear distribution partnership with Charter Communications was renewed early. Also, Kroger closed up more than +7% after raising guidance on the lower end of its full-year sales forecast. In addition, Nvidia closed up more than +1% after CEO Huang said his company is experiencing strong demand for its latest generation of AI chips, called Blackwell.
US stocks garnered some carryover support from the rally in European stocks, as the Euro Stoxx 50 climbed +1.06% after the ECB cut its deposit facility rate by -25 bp to 3.50% from 3.75%.
Thursday’s as-expected US Aug PPI report was negative for stocks as it dampened speculation that the Fed will be able to cut interest rates by -50 bp at next week’s FOMC meeting. Also, an unexpected increase in US initial unemployment claims signaled weakness in the labor market that is negative for economic growth. In addition, most chip stocks saw pressure Thursday after Micron Technology was downgraded to underperform at BNP Paribas Exane.
US weekly initial unemployment claims unexpectedly rose +2,000 to 230,000, showing a slightly weaker labor market than expectations of a decline to 226,000.
US Aug PPI final demand eased to +1.7% y/y from +2.1% y/y in July, right on expectations and the smallest increase in 6 months. Aug PPI ex-food and energy rose +2.4% y/y, up from +2.3% y/y in July and right on expectations.
The markets are discounting the chances at 100% for a -25 bp rate cut for the September 17-18 FOMC meeting and at 33% for a -50 bp rate cut at that meeting.
Overseas stock markets Thursday settled mixed. The Euro Stoxx 50 closed up +1.06%. China's Shanghai Composite closed down -0.17%. Japan's Nikkei Stock 225 closed up sharply by +3.41%.
Interest Rates
December 10-year T-notes (ZNZ24) Thursday closed down by -4.5 ticks. The 10-year T-note yield rose +2.5 bp to 3.678%. Dec T-notes were under pressure Thursday on negative carryover from a slide in European government bonds. Also, Thursday's rally in stocks curbed safe-haven demand for T-notes. Losses in T-notes were limited after weekly US jobless claims unexpectedly increased, a dovish factor for Fed policy. Also, short covering emerged in T-notes following decent demand for the Treasury’s $22 billion auction of 30-year T-bonds with a bid-to-cover ratio of 2.38, right on the average of the past ten auctions.
European government bond yields on Thursday moved higher. The 10-year German bund yield rose +3.9 bp to 2.150%. The 10-year UK gilt rose +2.0 bp to 3.781%.
As expected, the ECB cut its deposit facility rate by -25 bp to 3.50% from 3.75% and said it would continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of interest rates.
The ECB cut its Eurozone 2024 GDP forecast to +0.8% from a previous forecast of +0.9% and raised its 2024 core inflation forecast to +2.9% from +2.8%.
ECB President Lagarde said Eurozone growth risks are tilted to the downside and, "according to survey indicators, the recovery in the Eurozone is continuing to face some headwinds."
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 56% for the October 17 meeting.
US Stock Movers
Micron Technology closed down more than -3% to lead chip stocks lower after BNP Paribas Exane downgraded the stock to underperform from outperform with a price target of $67. Also, Texas Instruments closed down more than -3% and Intel closed down more than -1% to lead losers in the Dow Jones Industrials. In addition, GlobalFoundries , NXP Semiconductors NV , ON Semiconductor , KLA Corp , Microchip Technology , and Lam Research closed down more than -2%.
Warner Bos Discovery closed up more than +10% to lead gainers in the S&P 500 and Nasdaq 100 after it said its multiyear distribution partnership with Charter Communications was renewed early.
Kroger closed up more than +7% after raising the lower end of its full-year sales guidance to +0.75% to +1.75% from a previous forecast of +0.25% to +1.75%
Axon Enterprise closed up more than +6% after JMP Securities raised its price target on the stock to $430 from $375.
Nvidia closed up more than +1% after CEO Huang said his company is experiencing strong demand for its latest generation of AI chips, called Blackwell.
Gilead Sciences closed up more than +2% after it stopped the blinded phase of its trial of the HIV drug lenacapavir after the drug reduced infections by 96%
Signet Jewelers Ltd closed up more than +11% after reporting Q2 adjusted EPS of $1.25, stronger than the consensus of $1.12, and forecast 2025 adjusted EPS of $9.90-$11.52, with the midpoint above the consensus of $10.24.
Netgear closed up more than +31% after raising its Q3 revenue guidance to $170 million-$180 million from a previous estimate of $160 million-$175 million.
Roku closed up more than +5% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $93.
Moderna closed down more than -12% to lead losers in the S&P 500 and Nasdaq 100 after it said it will cut its research and development budget by about 20% over the next three years to achieve a $1.1 billion cut from its R&D budget by 2027.
Wells Fargo & Co closed down more than -4% after reaching a deal with the Office of the Comptroller of the Currency, requiring it to beef up systems for detecting money laundering and complying with international sanctions.
Caleres closed down more than -18% after reporting Q2 net sales of $683.3 million, weaker than the consensus of $723.8 million, and cutting its 2025 operating margin forecast to 7.0% to 7.1% from a previous view of 7.3% to 7.5%.
Fortinet closed down more than -2% on a data breach after it said someone had broken into a “limited” number of files that contained information related to some of its customers.
Interpublic Group of Cos closed down more than -1% after UBS downgraded the stock to sell from neutral with a price target of $29.
Earnings Reports (9/13/2024)
Dakota Gold Corp (DC), Selectquote Inc (SLQT), Spire Global Inc (SPIR).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
Arizona-based Microchip Technology Incorporated , with a weaker-than-expected Q4 revenue forecast. The negative sentiment spread across the sector, with several major chip companies also seeing significant declines.
Moreover, the stock fell more than 6% on Sept. 3, as chip stocks plunged across the board, weighing down the overall market.
Adding to that, MCHP stock dropped by 5% after the company released its Q1 earnings on Aug. 1. Its net sales were down 45.8% year over year to $1.2 billion, and its net income dropped 80.6% annually to $129.3 million.
To emphasize the stock’s underperformance, MCHP has underperformed its competitor Analog Devices, Inc. , which rose 13.4% on a YTD basis and 26.7% over the past 52 weeks.
Despite its underperformance compared to DOWI, analysts are bullish about MCHP’s prospects. The stock holds a consensus rating of “Strong Buy” from 22 analysts covering it, and the mean target of $96.28 is a premium of 24.3% from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
Amtech Systems ASYS shares have gained 47.9% year to date (YTD), outperforming the Zacks Computer and Technology Sector and S&P 500 index’s return of 17.6% and 16.2%, respectively, YTD.
ASYS has also outperformed its Zacks Semiconductor - General industry peers, including Texas Instruments TXN, STMicroelectronics STM and Intel INTC. Shares of Texas Instruments have gained 18.8% YTD. Shares of STMicroelectronics and Intel have plunged 43.5% and 60.9% in the same time frame.
The outperformance of ASYS reflects investors’ confidence in the strong position of Amtech in its manufacturing business. Since Amtech manufactures a range of capital equipment and related consumables used in the production of semiconductors, silicon carbide and solar power technologies, the diversity strengthens investors’ confidence that the company will produce stable returns despite headwinds in some of its end markets.
ASYS Faces Mixed Demand for Its Products
Amtech develops advanced electronics systems for the automotive industry that support functions like advanced driver assistance systems, telematics and infotainment. ASYS has reported in its third-quarter 2024 earnings that it is experiencing an increased adoption of power electronic applications in hybrid and electric vehicles.
ASYS is also experiencing traction in its advanced packaging processors and high-performance computing, driven by increased utilization rates among outsourced semiconductor assembly and test companies and original equipment manufacturers.
However, ASYS is suffering from a decline in demand for its horizontal diffusion furnaces used in power electronic semiconductor applications for automotive and industrial markets. Amtech’s consumable products used in semiconductor fabrication are facing inconsistent demand.
Amtech Systems YTD Performance
Amtech’s business is cyclical in nature, and it is currently going through a contraction cycle due to an extended cyclical downturn in personal computer and smartphone demand after the subsequent rise in demand for these electronic products during the pandemic. The company is also suffering from macroeconomic challenges like high inflation and rising interest rates, which are forcing its enterprise customers to delay their orders.
These factors have negatively impacted its top line. ASYS' top line is grappling with inconsistency and decelerated growth at present. For the fourth quarter of fiscal 2024, Amtech expects revenues in the range of $22-$25 million. The Zacks Consensus Estimate for revenues is pegged at $23 million, indicating a year-over-year decline of 17%.
Conclusion
Amtech is facing mixed demand for its products across its end markets, which is affecting its top-line growth. Amtech’s Value Style Score of C suggests that the stock has a stretched valuation at this moment. The stock’s Zacks Rank #3 (Hold) suggests that investors should wait for a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Investment Research
The S&P 500 Index today is up by +0.20%, the Dow Jones Industrials Index is down by -0.08%, and the Nasdaq 100 Index is up by +0.42%.
Stocks today recovered from early losses and are trading mostly higher, with the S&P 500 and Nasdaq 100 posting 1-week highs. Positive corporate news is lifting the overall market today, with Warner Bos Discovery up more than +9% after it said its multiyear distribution partnership with Charter Communications was renewed early. Also, Kroger is up more than +6% after raising guidance on the lower end of its full-year sales forecast. In addition, Nvidia is up more than +1% after CEO Huang said his company is experiencing strong demand for its latest generation of AI chips, called Blackwell.
US stocks garnered some carryover support from the rally in European stocks today, as the Euro Stoxx 50 climbed +1.06% after the ECB cut its deposit facility rate by -25 bp to 3.50% from 3.75%.
Today’s as-expected US Aug PPI report was negative for stocks as it dampened speculation that the Fed will be able to cut interest rates by -50 bp at next week’s FOMC meeting. Also, an unexpected increase in US initial unemployment claims signaled weakness in the labor market that is negative for economic growth. In addition, most chip stocks saw pressure today after Micron Technology was downgraded to underperform at BNP Paribas Exane.
US weekly initial unemployment claims unexpectedly rose +2,000 to 230,000, showing a slightly weaker labor market than expectations of a decline to 226,000.
US Aug PPI final demand eased to +1.7% y/y from +2.1% y/y in July, right on expectations and the smallest increase in 6 months. Aug PPI ex-food and energy rose +2.4% y/y, up from +2.3% y/y in July and right on expectations.
The markets are discounting the chances at 100% for a -25 bp rate cut for the September 17-18 FOMC meeting and at 14% for a -50 bp rate cut at that meeting.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up +1.06%. China's Shanghai Composite closed down -0.17%. Japan's Nikkei Stock 225 closed up sharply by +3.41%.
Interest Rates
December 10-year T-notes (ZNZ24) today are down by -8 ticks. The 10-year T-note yield is up +3.5 bp at 3.687%. Dec T-notes today are under pressure on negative carryover from a slide in European government bonds. Also, supply pressures are negative for T-notes as the Treasury will auction $22 billion of reopened 30-year T-bonds later today to conclude this week’s auction slate of $119 billion of T-notes and T-bonds. Losses in T-notes are limited after weekly US jobless claims unexpectedly increased, a dovish factor for Fed policy.
European government bond yields today are moving higher. The 10-year German bund yield is up +4.1 bp at 2.152%. The 10-year UK gilt is up +1.8 bp at 3.780%.
As expected, the ECB cut its deposit facility rate by -25 bp to 3.50% from 3.75% and said it would continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of interest rates.
The ECB cut its Eurozone 2024 GDP forecast to +0.8% from a previous forecast of +0.9% and raised its 2024 core inflation forecast to +2.9% from +2.8%.
ECB President Lagarde said Eurozone growth risks are tilted to the downside and, "according to survey indicators, the recovery in the Eurozone is continuing to face some headwinds."
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 52% for the October 17 meeting.
US Stock Movers
Micron Technology is down more than -4% to lead chip stocks lower after BNP Paribas Exane downgraded the stock to underperform from outperform with a price target of $67. Also, NXP Semiconductors NV , Texas Instruments , Applied Materials , ON Semiconductor , KLA Corp , Microchip Technology , and Lam Research are down more than -1%. Finally, Intel is down more than -1% to lead losers in the Dow Jones Industrials.
Warner Bos Discovery is up more than +9% to lead gainers in the S&P 500 and Nasdaq 100 after it said its multiyear distribution partnership with Charter Communications was renewed early.
Axon Enterprise is up more than +4% after JMP Securities raised its price target on the stock to $430 from $375.
Nvidia is up more than +1% after CEO Huang said his company is experiencing strong demand for its latest generation of AI chips, called Blackwell.
Gilead Sciences is up more than +2% after it stopped the blinded phase of its trial of the HIV drug lenacapavir after the drug reduced infections by 96%
Kroger is up more than +6% after raising the lower end of its full-year sales guidance to +0.75% to +1.75% from a previous forecast of +0.25% to +1.75%
Signet Jewelers Ltd is up more than +17% after reporting Q2 adjusted EPS of $1.25, stronger than the consensus of $1.12, and forecast 2025 adjusted EPS of $9.90-$11.52, with the midpoint above the consensus of $10.24.
Netgear is up more than +33% after raising its Q3 revenue guidance to $170 million-$180 million from a previous estimate of $160 million-$175 million.
Alaska Air Group is up more than +1% after raising its outlook for Q3 EPS to $2.15-$2.25 from a previous forecast of $1.40-$1.60.
Roku is up more than +4% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $93.
Moderna is down more than -16% to lead losers in the S&P 500 and Nasdaq 100 after it said it will cut its research and development budget by about 20% over the next three years to achieve a $1.1 billion cut from its R&D budget by 2027.
Caleres is down more than -20% after reporting Q2 net sales of $683.3 million, weaker than the consensus of $723.8 million, and cutting its 2025 operating margin forecast to 7.0% to 7.1% from a previous view of 7.3% to 7.5%.
Interpublic Group of Cos is down more than -2% after UBS downgraded the stock to sell from neutral with a price target of $29.
Oxford Industries is down more than -1% after reporting Q2 adjusted EPS of $2.77, weaker than the consensus of $3.04, and cutting its 2025 adjusted EPS forecast to $7.00-$7.30 from a previous forecast of $8.60-$9.00, well below the consensus of $8.79.
Earnings Reports (9/12/2024)
Adobe Inc (ADBE), Caleres Inc (CAL), IBEX Holdings Ltd (IBEX), Ispire Technology Inc (ISPR), Kroger Co/The (KR), Lovesac Co/The (LOVE), NexPoint Diversified Real Esta (NXDT), Radiant Logistics Inc (RLGT), RH (RH), Signet Jewelers Ltd (SIG), Value Line Inc (VALU).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.
In the latest trading session, Texas Instruments (TXN) closed at $202.41, marking a +1.31% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.17%.
Shares of the chipmaker have appreciated by 1.29% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.16% and lagging the S&P 500's gain of 2.92%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, down 24.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, down 9.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $15.72 billion, which would represent changes of -27.72% and -10.28%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Texas Instruments. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, Texas Instruments boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 39.09. Its industry sports an average Forward P/E of 20.45, so one might conclude that Texas Instruments is trading at a premium comparatively.
It's also important to note that TXN currently trades at a PEG ratio of 4.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 3.86 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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