Microchip Technology, Inc. shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential. Investors have an opportunity to buy the stock and target the $ 200.
The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
The earnings growth currently anticipated by analysts for the coming years is particularly strong.
The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The group usually releases upbeat results with huge surprise rates.
One of the major weak points of the company is its financial situation.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 39.71 times its estimated earnings per share for the ongoing year.
The company's "enterprise value to sales" ratio is among the highest in the world.
The company appears highly valued given the size of its balance sheet.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
The average consensus view of analysts covering the stock has deteriorated over the past four months.
ę MarketScreener.com 2021
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