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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
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STMicroelectronics (STM - Free Report) closed at $49.85 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's 1.22% gain on the day. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.
Prior to today's trading, shares of the chip company had gained 15.34% over the past month. This has outpaced the Computer and Technology sector's gain of 12.34% and the S&P 500's gain of 6.22% in that time.
STMicroelectronics will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.10, up 19.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.27 billion, up 11.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.25 per share and revenue of $17.25 billion, which would represent changes of +1.43% and +6.99%, respectively, from the prior year.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. STMicroelectronics is currently a Zacks Rank #3 (Hold).
Digging into valuation, STMicroelectronics currently has a Forward P/E ratio of 11.82. This represents a discount compared to its industry's average Forward P/E of 19.89.
It is also worth noting that STM currently has a PEG ratio of 2.36. 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. The Semiconductor - General was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
STMicroelectronics (STM - Free Report) closed at $49.85 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's 1.22% gain on the day. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.
Prior to today's trading, shares of the chip company had gained 15.34% over the past month. This has outpaced the Computer and Technology sector's gain of 12.34% and the S&P 500's gain of 6.22% in that time.
STMicroelectronics will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.10, up 19.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.27 billion, up 11.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.25 per share and revenue of $17.25 billion, which would represent changes of +1.43% and +6.99%, respectively, from the prior year.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. STMicroelectronics is currently a Zacks Rank #3 (Hold).
Digging into valuation, STMicroelectronics currently has a Forward P/E ratio of 11.82. This represents a discount compared to its industry's average Forward P/E of 19.89.
It is also worth noting that STM currently has a PEG ratio of 2.36. 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. The Semiconductor - General was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.