Mellanox (MLNX) Stock Moves -0.65%: What You Should Know

Mellanox (MLNX) closed the most recent trading day at $119.67, moving -0.65% from the previous trading session. This change was narrower than the S&P 500's 2.81% loss on the day. Elsewhere, the Dow lost 2.94%, while the tech-heavy Nasdaq lost 3%.

Coming into today, shares of the semiconductor company had gained 0.53% in the past month. In that same time, the Computer and Technology sector lost 2.16%, while the S&P 500 lost 3.97%.

Wall Street will be looking for positivity from MLNX as it approaches its next earnings report date. On that day, MLNX is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 10.06%. Our most recent consensus estimate is calling for quarterly revenue of $346.45 million, up 13.51% from the year-ago period.

MLNX's full-year Zacks Consensus Estimates are calling for earnings of $7.60 per share and revenue of $1.46 billion. These results would represent year-over-year changes of +6.29% and +9.67%, respectively.

Investors might also notice recent changes to analyst estimates for MLNX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MLNX is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, MLNX is holding a Forward P/E ratio of 15.85. This represents a discount compared to its industry's average Forward P/E of 18.28.

It is also worth noting that MLNX currently has a PEG ratio of 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.69 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.