Mellanox (MLNX) Stock Moves -1.44%: What You Should Know

Mellanox (MLNX) closed at $106.51 in the latest trading session, marking a -1.44% move from the prior day. This move was narrower than the S&P 500's daily loss of 4.34%. At the same time, the Dow lost 4.55%, and the tech-heavy Nasdaq lost 3.79%.

Coming into today, shares of the semiconductor company had lost 11.97% in the past month. In that same time, the Computer and Technology sector lost 27.47%, while the S&P 500 lost 28.78%.

Wall Street will be looking for positivity from MLNX as it approaches its next earnings report date. The company is expected to report EPS of $1.75, up 10.06% from the prior-year quarter. 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.

It is also important to note the recent changes to analyst estimates for MLNX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. MLNX currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, MLNX is holding a Forward P/E ratio of 14.22. For comparison, its industry has an average Forward P/E of 12.77, which means MLNX is trading at a premium to the group.

We can also see that MLNX currently has a PEG ratio of 0.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MLNX's industry had an average PEG ratio of 1.5 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 MLNX in the coming trading sessions, be sure to utilize Zacks.com.