Back to top

Image: Bigstock

United Microelectronics Corporation (UMC) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, United Microelectronics Corporation (UMC - Free Report) closed at $6.70, marking a +1.21% move from the previous day. This change lagged the S&P 500's 1.92% gain on the day. Elsewhere, the Dow gained 2.15%, while the tech-heavy Nasdaq added 0.16%.

Heading into today, shares of the company had lost 17.04% over the past month, lagging the Computer and Technology sector's gain of 2.35% and the S&P 500's gain of 1.54% in that time.

Wall Street will be looking for positivity from United Microelectronics Corporation as it approaches its next earnings report date. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $2.32 billion, up 26.93% from the year-ago period.

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.

Any recent changes to analyst estimates for United Microelectronics Corporation should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. United Microelectronics Corporation currently has a Zacks Rank of #3 (Hold).

Digging into valuation, United Microelectronics Corporation currently has a Forward P/E ratio of 5.25. Its industry sports an average Forward P/E of 13.67, so we one might conclude that United Microelectronics Corporation is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 134, which puts it in the bottom 47% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


United Microelectronics Corporation (UMC) - free report >>

Published in