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STMicroelectronics (STM) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, STMicroelectronics (STM - Free Report) closed at $48.03, marking a -1.11% move from the previous day. This move lagged the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 3.27%.
Prior to today's trading, shares of the chip company had lost 1.2% over the past month. This has lagged the Computer and Technology sector's gain of 1.45% and was narrower than the S&P 500's loss of 3.02% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release. The company is expected to report EPS of $0.96, up 21.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $17.05 billion, which would represent changes of -3.34% and +5.71%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for STMicroelectronics. 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.
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.
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 has moved 0.12% higher. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 12. For comparison, its industry has an average Forward P/E of 23.53, which means STMicroelectronics is trading at a discount to the group.
We can also see that STM currently has a PEG ratio of 2.4. 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. STM's industry had an average PEG ratio of 2.89 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 194, which puts it in the bottom 24% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $48.03, marking a -1.11% move from the previous day. This move lagged the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 3.27%.
Prior to today's trading, shares of the chip company had lost 1.2% over the past month. This has lagged the Computer and Technology sector's gain of 1.45% and was narrower than the S&P 500's loss of 3.02% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release. The company is expected to report EPS of $0.96, up 21.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $17.05 billion, which would represent changes of -3.34% and +5.71%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for STMicroelectronics. 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.
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.
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 has moved 0.12% higher. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 12. For comparison, its industry has an average Forward P/E of 23.53, which means STMicroelectronics is trading at a discount to the group.
We can also see that STM currently has a PEG ratio of 2.4. 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. STM's industry had an average PEG ratio of 2.89 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 194, which puts it in the bottom 24% 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.