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STMicroelectronics (STM) Ascends But Remains Behind Market: Some Facts to Note
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In the latest market close, STMicroelectronics (STM - Free Report) reached $47.76, with a +0.61% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.37%.
Shares of the chip company have appreciated by 15.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.96% and the S&P 500's gain of 4.39%.
Market participants will be closely following the financial results of STMicroelectronics in its upcoming release. The company is predicted to post an EPS of $0.98, indicating a 25.76% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.3 billion, down 2.76% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.29 per share and a revenue of $17.34 billion, indicating changes of +2.39% and +7.52%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for STMicroelectronics. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, STMicroelectronics is at present trading with a Forward P/E ratio of 11.08. Its industry sports an average Forward P/E of 19.67, so one might conclude that STMicroelectronics is trading at a discount comparatively.
We can also see that STM currently has a PEG ratio of 2.22. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 2.62.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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STMicroelectronics (STM) Ascends But Remains Behind Market: Some Facts to Note
In the latest market close, STMicroelectronics (STM - Free Report) reached $47.76, with a +0.61% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.37%.
Shares of the chip company have appreciated by 15.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.96% and the S&P 500's gain of 4.39%.
Market participants will be closely following the financial results of STMicroelectronics in its upcoming release. The company is predicted to post an EPS of $0.98, indicating a 25.76% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.3 billion, down 2.76% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.29 per share and a revenue of $17.34 billion, indicating changes of +2.39% and +7.52%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for STMicroelectronics. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, STMicroelectronics is at present trading with a Forward P/E ratio of 11.08. Its industry sports an average Forward P/E of 19.67, so one might conclude that STMicroelectronics is trading at a discount comparatively.
We can also see that STM currently has a PEG ratio of 2.22. 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. As of the close of trade yesterday, the Semiconductor - General industry held an average PEG ratio of 2.62.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.