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STMicroelectronics (STM) Outpaces Stock Market Gains: What You Should Know
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STMicroelectronics (STM - Free Report) closed the most recent trading day at $40.16, moving +1.49% from the previous trading session. This change outpaced the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Coming into today, shares of the chip company had gained 1.67% in the past month. In that same time, the Computer and Technology sector lost 2.78%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. This is expected to be January 26, 2023. In that report, analysts expect STMicroelectronics to post earnings of $1.13 per share. This would mark year-over-year growth of 37.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.44 billion, up 24.73% from the year-ago period.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 10.44. This represents a discount compared to its industry's average Forward P/E of 15.44.
It is also worth noting that STM currently has a PEG ratio of 2.09. 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 Semiconductor - General industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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STMicroelectronics (STM) Outpaces Stock Market Gains: What You Should Know
STMicroelectronics (STM - Free Report) closed the most recent trading day at $40.16, moving +1.49% from the previous trading session. This change outpaced the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Coming into today, shares of the chip company had gained 1.67% in the past month. In that same time, the Computer and Technology sector lost 2.78%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. This is expected to be January 26, 2023. In that report, analysts expect STMicroelectronics to post earnings of $1.13 per share. This would mark year-over-year growth of 37.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.44 billion, up 24.73% from the year-ago period.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 10.44. This represents a discount compared to its industry's average Forward P/E of 15.44.
It is also worth noting that STM currently has a PEG ratio of 2.09. 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 Semiconductor - General industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.