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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, STMicroelectronics (STM - Free Report) closed at $44.22, marking a -0.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the chip company had lost 8.67% over the past month, lagging the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% 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 $1.07, down 7.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 0.12% from the year-ago period.
STM's full-year Zacks Consensus Estimates are calling for earnings of $4.29 per share and revenue of $17.33 billion. These results would represent year-over-year changes of +2.39% and +7.44%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STMicroelectronics is currently a Zacks Rank #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 10.32. This valuation marks a discount compared to its industry's average Forward P/E of 18.39.
Investors should also note that STM has a PEG ratio of 2.06 right now. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.84 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 81, which puts it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $44.22, marking a -0.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the chip company had lost 8.67% over the past month, lagging the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% 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 $1.07, down 7.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 0.12% from the year-ago period.
STM's full-year Zacks Consensus Estimates are calling for earnings of $4.29 per share and revenue of $17.33 billion. These results would represent year-over-year changes of +2.39% and +7.44%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STMicroelectronics is currently a Zacks Rank #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 10.32. This valuation marks a discount compared to its industry's average Forward P/E of 18.39.
Investors should also note that STM has a PEG ratio of 2.06 right now. 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. The Semiconductor - General industry currently had an average PEG ratio of 2.84 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 81, which puts it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.