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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 $43.12 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the chip company had lost 8.21% in the past month. In that same time, the Computer and Technology sector lost 4.63%, while the S&P 500 lost 4.45%.
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 $1.08 per share. This would mark a year-over-year decline of 6.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 0.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.31 per share and revenue of $17.36 billion, which would represent changes of +2.86% and +7.63%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. STMicroelectronics is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 10.02 right now. Its industry sports an average Forward P/E of 21.26, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Investors should also note that STM has a PEG ratio of 2 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 was holding an average PEG ratio of 2.67 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 34, putting it in the top 14% 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.
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
STMicroelectronics (STM - Free Report) closed at $43.12 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the chip company had lost 8.21% in the past month. In that same time, the Computer and Technology sector lost 4.63%, while the S&P 500 lost 4.45%.
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 $1.08 per share. This would mark a year-over-year decline of 6.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 0.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.31 per share and revenue of $17.36 billion, which would represent changes of +2.86% and +7.63%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. STMicroelectronics is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 10.02 right now. Its industry sports an average Forward P/E of 21.26, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Investors should also note that STM has a PEG ratio of 2 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 was holding an average PEG ratio of 2.67 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 34, putting it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.