We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
STMicroelectronics (STM) Surpasses Market Returns: Some Facts Worth Knowing
Read MoreHide Full Article
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $43.52, marking a +1.47% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.
The chip company's stock has dropped by 1.99% in the past month, exceeding the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Analysts and investors alike will be keeping a close eye on the performance of STMicroelectronics in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2023. The company is expected to report EPS of $1.08, down 6.9% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.36 billion, indicating a 0.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.31 per share and a revenue of $17.36 billion, representing 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 help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. As of now, STMicroelectronics holds a Zacks Rank of #2 (Buy).
Looking at valuation, STMicroelectronics is presently trading at a Forward P/E ratio of 9.96. This denotes a discount relative to the industry's average Forward P/E of 18.86.
Also, we should mention that STM has a PEG ratio of 1.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General was holding an average PEG ratio of 2.69 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
STMicroelectronics (STM) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $43.52, marking a +1.47% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.
The chip company's stock has dropped by 1.99% in the past month, exceeding the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
Analysts and investors alike will be keeping a close eye on the performance of STMicroelectronics in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2023. The company is expected to report EPS of $1.08, down 6.9% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.36 billion, indicating a 0.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.31 per share and a revenue of $17.36 billion, representing 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 help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. As of now, STMicroelectronics holds a Zacks Rank of #2 (Buy).
Looking at valuation, STMicroelectronics is presently trading at a Forward P/E ratio of 9.96. This denotes a discount relative to the industry's average Forward P/E of 18.86.
Also, we should mention that STM has a PEG ratio of 1.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - General was holding an average PEG ratio of 2.69 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% 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.