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Stellantis (STLA) Gains As Market Dips: What You Should Know

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In the latest trading session, Stellantis (STLA - Free Report) closed at $18.74, marking a +0.59% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%.

Prior to today's trading, shares of the automaker had lost 6.94% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 6.46% and the S&P 500's gain of 2.91% in that time.

STLA will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021.

STLA's full-year Zacks Consensus Estimates are calling for earnings of $3.57 per share and revenue of $183.45 billion. These results would represent year-over-year changes of +162.5% and +83.74%, respectively.

Any recent changes to analyst estimates for STLA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 1.93% lower. STLA is currently a Zacks Rank #3 (Hold).

Looking at its valuation, STLA is holding a Forward P/E ratio of 5.23. This valuation marks a discount compared to its industry's average Forward P/E of 10.06.

It is also worth noting that STLA currently has a PEG ratio of 0.25. 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. STLA's industry had an average PEG ratio of 0.48 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.

To follow STLA in the coming trading sessions, be sure to utilize Zacks.com.


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