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STMicroelectronics (STM) Gains But Lags Market: What You Should Know
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STMicroelectronics (STM - Free Report) closed at $44.44 in the latest trading session, marking a +0.5% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Coming into today, shares of the chip company had lost 6.35% in the past month. In that same time, the Computer and Technology sector gained 1.08%, while the S&P 500 lost 0.73%.
Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. In that report, analysts expect STMicroelectronics to post earnings of $1.07 per share. This would mark a year-over-year decline of 7.76%. Our most recent consensus estimate is calling for quarterly revenue 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. These revisions help to show the ever-changing nature of 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 10.31. Its industry sports an average Forward P/E of 18.32, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
We can also see that STM currently has a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STM's industry had an average PEG ratio of 2.82 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 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
STMicroelectronics (STM - Free Report) closed at $44.44 in the latest trading session, marking a +0.5% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Coming into today, shares of the chip company had lost 6.35% in the past month. In that same time, the Computer and Technology sector gained 1.08%, while the S&P 500 lost 0.73%.
Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. In that report, analysts expect STMicroelectronics to post earnings of $1.07 per share. This would mark a year-over-year decline of 7.76%. Our most recent consensus estimate is calling for quarterly revenue 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. These revisions help to show the ever-changing nature of 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 10.31. Its industry sports an average Forward P/E of 18.32, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
We can also see that STM currently has a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STM's industry had an average PEG ratio of 2.82 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 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.