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United Microelectronics Corporation (UMC) Stock Sinks As Market Gains: What You Should Know

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United Microelectronics Corporation (UMC - Free Report) closed the most recent trading day at $7.97, moving -0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the company had lost 6.67% over the past month. This has lagged the Computer and Technology sector's loss of 4.95% and the S&P 500's loss of 5.71% in that time.

Investors will be hoping for strength from United Microelectronics Corporation as it approaches its next earnings release. In that report, analysts expect United Microelectronics Corporation to post earnings of $0.33 per share. This would mark year-over-year growth of 83.33%. Meanwhile, our latest consensus estimate is calling for revenue of $2.32 billion, up 26.93% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.26 per share and revenue of $9.21 billion. These totals would mark changes of +51.81% and +20.77%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for United Microelectronics Corporation. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. United Microelectronics Corporation is currently a Zacks Rank #2 (Buy).

Investors should also note United Microelectronics Corporation's current valuation metrics, including its Forward P/E ratio of 6.33. This valuation marks a discount compared to its industry's average Forward P/E of 14.33.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, 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.

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