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STMicroelectronics (STM) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, STMicroelectronics (STM - Free Report) closed at $50.43, marking a +1.04% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the chip company had gained 7.82% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
The upcoming earnings release of STMicroelectronics will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 25.76% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.3 billion, reflecting a 2.76% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.29 per share and a revenue of $17.34 billion, demonstrating changes of +2.39% and +7.52%, respectively, from the preceding year.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been no change in the Zacks Consensus EPS estimate. Currently, STMicroelectronics is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, STMicroelectronics is currently exchanging hands at a Forward P/E ratio of 11.65. This expresses a discount compared to the average Forward P/E of 20.66 of its industry.
Meanwhile, STM's PEG ratio is currently 2.33. 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. STM's industry had an average PEG ratio of 2.83 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 27% of all industries, numbering over 250.
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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
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STMicroelectronics (STM) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $50.43, marking a +1.04% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the chip company had gained 7.82% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
The upcoming earnings release of STMicroelectronics will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 25.76% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.3 billion, reflecting a 2.76% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.29 per share and a revenue of $17.34 billion, demonstrating changes of +2.39% and +7.52%, respectively, from the preceding year.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been no change in the Zacks Consensus EPS estimate. Currently, STMicroelectronics is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, STMicroelectronics is currently exchanging hands at a Forward P/E ratio of 11.65. This expresses a discount compared to the average Forward P/E of 20.66 of its industry.
Meanwhile, STM's PEG ratio is currently 2.33. 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. STM's industry had an average PEG ratio of 2.83 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 27% of all industries, numbering over 250.
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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.