Microchip Technology (MCHP)

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Microchip Technology (MCHP) Has Potential To Growth

With some uncertain trading in the summer, investors were starting to worry if the incredible growth in the semiconductor industry could keep up, and if stocks in this segment would continue moving in the right direction. After all, the space had been on fire and there was plenty of hype regarding a variety of new areas for semiconductor companies to expand into in the near future, but questions remained about how just how far in the future this boom might be.

Though not in the same Zacks Industry as Micron, Microchip Technology (MCHP) is also a well-positioned semiconductor stock. This is especially true when you consider what an incredible premium investors are putting on growth in today’s environment, as MCHP has a Growth Grade of ‘A’ right now.

This strong grade is due to the industry-beating margins and projected sales growth, as well as a ROE above 34%. Add in projected EPS growth over 30% and a stunning 57% growth in current cash flow growth, and it is clear that this stock is a growth investor’s dream.

But it isn’t just cash flow growth that is impressive, as the company is also making great gains on the profit front too. Analysts are also taking note of these trends, and we have seen only analyst upgrades when it comes to earnings expectations over the past two months.

The analyst moves haven’t just been a penny or two either. We have seen a pretty sizable magnitude change in the consensus for a number of time periods. This includes a seven percent shift in the current quarter consensus in the past two months, a 7.7% move in the full year consensus in the same time frame, and a similar boost to the following year as well.http://www.stocksmarketnews.com/bull-of-the-day-microchip-technology-mchp/