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Silicon Motion (SIMO) Gains As Market Dips: What You Should Know
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In the latest trading session, Silicon Motion (SIMO - Free Report) closed at $71.99, marking a +0.57% move from the previous day. This change outpaced the S&P 500's 0.27% loss on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the chip company had gained 2.21% in the past month. In that same time, the Computer and Technology sector gained 7.53%, while the S&P 500 gained 7.36%.
Investors will be hoping for strength from Silicon Motion as it approaches its next earnings release. The company is expected to report EPS of $1.48, up 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $228.76 million, up 25.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.71 per share and revenue of $1.14 billion, which would represent changes of +24.15% and +23.62%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Silicon Motion. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Silicon Motion is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 9.29. For comparison, its industry has an average Forward P/E of 18.41, which means Silicon Motion is trading at a discount to the group.
Also, we should mention that SIMO has a PEG ratio of 1.03. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Silicon Motion (SIMO) Gains As Market Dips: What You Should Know
In the latest trading session, Silicon Motion (SIMO - Free Report) closed at $71.99, marking a +0.57% move from the previous day. This change outpaced the S&P 500's 0.27% loss on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the chip company had gained 2.21% in the past month. In that same time, the Computer and Technology sector gained 7.53%, while the S&P 500 gained 7.36%.
Investors will be hoping for strength from Silicon Motion as it approaches its next earnings release. The company is expected to report EPS of $1.48, up 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $228.76 million, up 25.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.71 per share and revenue of $1.14 billion, which would represent changes of +24.15% and +23.62%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Silicon Motion. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Silicon Motion is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 9.29. For comparison, its industry has an average Forward P/E of 18.41, which means Silicon Motion is trading at a discount to the group.
Also, we should mention that SIMO has a PEG ratio of 1.03. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.