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Silicon Motion (SIMO) Outpaces Stock Market Gains: What You Should Know

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Silicon Motion (SIMO - Free Report) closed at $92 in the latest trading session, marking a +1.66% move from the prior day. This move outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.42%.

Prior to today's trading, shares of the chip company had gained 6.76% over the past month. This has outpaced the Computer and Technology sector's loss of 5.11% and the S&P 500's gain of 0.22% in that time.

Wall Street will be looking for positivity from Silicon Motion as it approaches its next earnings report date. This is expected to be January 26, 2022. In that report, analysts expect Silicon Motion to post earnings of $1.77 per share. This would mark year-over-year growth of 105.81%. Meanwhile, our latest consensus estimate is calling for revenue of $262.98 million, up 82.75% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 5.54% lower. Silicon Motion currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Silicon Motion currently has a Forward P/E ratio of 12.76. This valuation marks a discount compared to its industry's average Forward P/E of 21.71.

Investors should also note that SIMO has a PEG ratio of 1.42 right now. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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