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MaxLinear (MXL) Soars 6.9%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2 min read

MaxLinear MXL shares soared 6.9% in the last trading session to close at $20.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.3% loss over the past four weeks.

MaxLinear benefits from an expanding portfolio. It recently announced the development of its fourth generation 200G/lane PAM4 SERDES (Serializer/Deserializer) and DSP family, Rushmore.

This chipmaker is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -127%. Revenues are expected to be $94.99 million, down 61.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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For MaxLinear, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MXL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

MaxLinear belongs to the Zacks Semiconductor - Analog and Mixed industry. Another stock from the same industry, Magnachip MX, closed the last trading session 2.8% lower at $5.49. Over the past month, MX has returned 2.7%.

Magnachip's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.33. Compared to the company's year-ago EPS, this represents a change of -37.5%. Magnachip currently boasts a Zacks Rank of #3 (Hold).

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MaxLinear, Inc (MXL) : Free Stock Analysis Report

Magnachip Semiconductor Corp. (MX) : Free Stock Analysis Report

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Zacks Investment Research