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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
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STMicroelectronics (STM - Free Report) closed the most recent trading day at $47.02, moving -0.51% from the previous trading session. This change lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the chip company had lost 7.77% over the past month, lagging the Computer and Technology sector's loss of 1.62% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release. On that day, STMicroelectronics is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 7.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 0.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.29 per share and revenue of $17.33 billion, which would represent changes of +2.39% and +7.44%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. STMicroelectronics is currently a Zacks Rank #3 (Hold).
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 18.86, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Also, we should mention that STM has a PEG ratio of 2.23. 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 2.98 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 79, putting it in the top 32% 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
STMicroelectronics (STM - Free Report) closed the most recent trading day at $47.02, moving -0.51% from the previous trading session. This change lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the chip company had lost 7.77% over the past month, lagging the Computer and Technology sector's loss of 1.62% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release. On that day, STMicroelectronics is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 7.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 0.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.29 per share and revenue of $17.33 billion, which would represent changes of +2.39% and +7.44%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. STMicroelectronics is currently a Zacks Rank #3 (Hold).
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 18.86, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Also, we should mention that STM has a PEG ratio of 2.23. 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 2.98 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 79, putting it in the top 32% 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.