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United Microelectronics Corporation (UMC) Dips More Than Broader Markets: What You Should Know

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United Microelectronics Corporation (UMC - Free Report) closed at $11.21 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's 0.97% loss on the day. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, added 0.23%.

Heading into today, shares of the company had lost 0.7% over the past month, outpacing the Computer and Technology sector's loss of 4.93% and the S&P 500's loss of 0.78% in that time.

Wall Street will be looking for positivity from United Microelectronics Corporation as it approaches its next earnings report date. This is expected to be January 25, 2022. In that report, analysts expect United Microelectronics Corporation to post earnings of $0.22 per share. This would mark year-over-year growth of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 30.28% from the prior-year quarter.

Any recent changes to analyst estimates for United Microelectronics Corporation should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. United Microelectronics Corporation is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, United Microelectronics Corporation currently has a Forward P/E ratio of 11.34. This represents a discount compared to its industry's average Forward P/E of 20.87.

Also, we should mention that UMC has a PEG ratio of 0.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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