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STMicroelectronics (STM) Gains But Lags Market: What You Should Know
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STMicroelectronics (STM - Free Report) closed the most recent trading day at $53.49, moving +0.73% from the previous trading session. This move lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Coming into today, shares of the chip company had gained 11.13% in the past month. In that same time, the Computer and Technology sector gained 8.79%, while the S&P 500 gained 2.28%.
STMicroelectronics will be looking to display strength as it nears its next earnings release. In that report, analysts expect STMicroelectronics to post earnings of $0.96 per share. This would mark year-over-year growth of 21.52%.
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.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. STMicroelectronics is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 13.12 right now. This valuation marks a discount compared to its industry's average Forward P/E of 24.47.
Also, we should mention that STM has a PEG ratio of 2.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.06 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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STMicroelectronics (STM) Gains But Lags Market: What You Should Know
STMicroelectronics (STM - Free Report) closed the most recent trading day at $53.49, moving +0.73% from the previous trading session. This move lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Coming into today, shares of the chip company had gained 11.13% in the past month. In that same time, the Computer and Technology sector gained 8.79%, while the S&P 500 gained 2.28%.
STMicroelectronics will be looking to display strength as it nears its next earnings release. In that report, analysts expect STMicroelectronics to post earnings of $0.96 per share. This would mark year-over-year growth of 21.52%.
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.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. STMicroelectronics is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 13.12 right now. This valuation marks a discount compared to its industry's average Forward P/E of 24.47.
Also, we should mention that STM has a PEG ratio of 2.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - General stocks are, on average, holding a PEG ratio of 3.06 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.