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Stellantis (STLA) Gains But Lags Market: What You Should Know

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Stellantis (STLA - Free Report) closed at $12.40 in the latest trading session, marking a +0.32% move from the prior day. The stock lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the automaker had lost 19.43% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 9.43% and the S&P 500's loss of 8.3% in that time.

Investors will be hoping for strength from Stellantis as it approaches its next earnings release.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $176.5 billion, which would represent changes of -13.2% and +76.78%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Stellantis. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Stellantis is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Stellantis is holding a Forward P/E ratio of 2.85. This represents a discount compared to its industry's average Forward P/E of 7.01.

We can also see that STLA currently has a PEG ratio of 0.08. 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. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.53 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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