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STMicroelectronics (STM - Free Report) ended the recent trading session at $48.77, demonstrating a +1.12% swing from the preceding day's closing price. This change lagged the S&P 500's 1.37% gain on the day. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the chip company have appreciated by 10.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.65% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of STMicroelectronics in its upcoming earnings disclosure. In that report, analysts expect STMicroelectronics to post earnings of $0.98 per share. This would mark a year-over-year decline of 25.76%. 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.
Investors might also notice recent changes 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, STMicroelectronics boasts a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is presently being traded at a Forward P/E ratio of 11.26. This indicates a discount in contrast to its industry's Forward P/E of 19.64.
Also, we should mention that STM has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.68.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
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STMicroelectronics (STM) Rises Yet Lags Behind Market: Some Facts Worth Knowing
STMicroelectronics (STM - Free Report) ended the recent trading session at $48.77, demonstrating a +1.12% swing from the preceding day's closing price. This change lagged the S&P 500's 1.37% gain on the day. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Shares of the chip company have appreciated by 10.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.65% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of STMicroelectronics in its upcoming earnings disclosure. In that report, analysts expect STMicroelectronics to post earnings of $0.98 per share. This would mark a year-over-year decline of 25.76%. 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.
Investors might also notice recent changes 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, STMicroelectronics boasts a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is presently being traded at a Forward P/E ratio of 11.26. This indicates a discount in contrast to its industry's Forward P/E of 19.64.
Also, we should mention that STM has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.68.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.