STMicroelectronics (STM - Free Report) closed the latest trading day at $46.56, indicating a -1.29% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Shares of the chip company have appreciated by 8.06% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Analysts and investors alike will be keeping a close eye on the performance of STMicroelectronics in its upcoming earnings disclosure. On that day, STMicroelectronics is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 46.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.6 billion, down 15.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.06 per share and a revenue of $16.23 billion, demonstrating changes of -31.39% and -6.11%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.56% lower. STMicroelectronics is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, STMicroelectronics is at present trading with a Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 30.43, which means STMicroelectronics is trading at a discount to the group.
One should further note that STM currently holds a PEG ratio of 3.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.66 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
STMicroelectronics (STM - Free Report) closed the latest trading day at $46.56, indicating a -1.29% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Shares of the chip company have appreciated by 8.06% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Analysts and investors alike will be keeping a close eye on the performance of STMicroelectronics in its upcoming earnings disclosure. On that day, STMicroelectronics is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 46.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.6 billion, down 15.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.06 per share and a revenue of $16.23 billion, demonstrating changes of -31.39% and -6.11%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.56% lower. STMicroelectronics is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, STMicroelectronics is at present trading with a Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 30.43, which means STMicroelectronics is trading at a discount to the group.
One should further note that STM currently holds a PEG ratio of 3.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.66 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on STM - FREE