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STMicroelectronics (STM) Gains As Market Dips: What You Should Know
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STMicroelectronics (STM - Free Report) closed the most recent trading day at $49.90, moving +1.59% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.13%.
Coming into today, shares of the chip company had gained 3.21% in the past month. In that same time, the Computer and Technology sector lost 1.8%, while the S&P 500 gained 2.36%.
STMicroelectronics will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.65, up 3.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 5.1% from the year-ago period.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.26% lower. STMicroelectronics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 19.19. For comparison, its industry has an average Forward P/E of 17.51, which means STMicroelectronics is trading at a premium to the group.
It is also worth noting that STM currently has a PEG ratio of 3.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.91 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
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STMicroelectronics (STM) Gains As Market Dips: What You Should Know
STMicroelectronics (STM - Free Report) closed the most recent trading day at $49.90, moving +1.59% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.13%.
Coming into today, shares of the chip company had gained 3.21% in the past month. In that same time, the Computer and Technology sector lost 1.8%, while the S&P 500 gained 2.36%.
STMicroelectronics will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.65, up 3.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 5.1% from the year-ago period.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.26% lower. STMicroelectronics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 19.19. For comparison, its industry has an average Forward P/E of 17.51, which means STMicroelectronics is trading at a premium to the group.
It is also worth noting that STM currently has a PEG ratio of 3.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.91 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.