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STMicroelectronics (STM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, STMicroelectronics (STM - Free Report) closed at $47.99, marking a +0.61% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Prior to today's trading, shares of the chip company had gained 13.14% over the past month. This has outpaced the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.31% 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 $1.10, up 19.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 revisions help to show the ever-changing nature of near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. STMicroelectronics is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 11.23 right now. Its industry sports an average Forward P/E of 22.79, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Also, we should mention that STM has a PEG ratio of 2.25. 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. STM's industry had an average PEG ratio of 2.44 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 93, which puts it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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STMicroelectronics (STM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $47.99, marking a +0.61% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Prior to today's trading, shares of the chip company had gained 13.14% over the past month. This has outpaced the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.31% 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 $1.10, up 19.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 revisions help to show the ever-changing nature of near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. STMicroelectronics is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 11.23 right now. Its industry sports an average Forward P/E of 22.79, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Also, we should mention that STM has a PEG ratio of 2.25. 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. STM's industry had an average PEG ratio of 2.44 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 93, which puts it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.