Diodes (DIOD) Outpaces Stock Market Gains: What You Should Know
Diodes (DIOD) closed the most recent trading day at $77.20, moving +1.78% from the previous trading session. This change outpaced the S&P 500's 1.02% gain on the day.
Heading into today, shares of the semiconductor components maker had lost 2.77% over the past month, lagging the Computer and Technology sector's gain of 1.36% and the S&P 500's gain of 3.01% in that time.
Investors will be hoping for strength from DIOD as it approaches its next earnings release, which is expected to be August 5, 2021. In that report, analysts expect DIOD to post earnings of $1.12 per share. This would mark year-over-year growth of 107.41%. Our most recent consensus estimate is calling for quarterly revenue of $434.8 million, up 50.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.24 per share and revenue of $1.69 billion. These totals would mark changes of +80.43% and +37.41%, respectively, from last year.
Any recent changes to analyst estimates for DIOD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DIOD is currently a Zacks Rank #2 (Buy).
Digging into valuation, DIOD currently has a Forward P/E ratio of 17.91. This valuation marks a discount compared to its industry's average Forward P/E of 18.02.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 DIOD in the coming trading sessions, be sure to utilize Zacks.com.
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