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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Read MoreHide Full Article
STMicroelectronics (STM - Free Report) closed the latest trading day at $46.56, indicating a -1.29% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Shares of the chip company have appreciated by 8.06% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Analysts and investors alike will be keeping a close eye on the performance of STMicroelectronics in its upcoming earnings disclosure. On that day, STMicroelectronics is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 46.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.6 billion, down 15.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.06 per share and a revenue of $16.23 billion, demonstrating changes of -31.39% and -6.11%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 7.56% lower. STMicroelectronics is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, STMicroelectronics is at present trading with a Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 30.43, which means STMicroelectronics is trading at a discount to the group.
One should further note that STM currently holds a PEG ratio of 3.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.66 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 99, positioning it in the top 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
STMicroelectronics (STM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
STMicroelectronics (STM - Free Report) closed the latest trading day at $46.56, indicating a -1.29% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Shares of the chip company have appreciated by 8.06% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Analysts and investors alike will be keeping a close eye on the performance of STMicroelectronics in its upcoming earnings disclosure. On that day, STMicroelectronics is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 46.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.6 billion, down 15.16% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.06 per share and a revenue of $16.23 billion, demonstrating changes of -31.39% and -6.11%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 7.56% lower. STMicroelectronics is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, STMicroelectronics is at present trading with a Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 30.43, which means STMicroelectronics is trading at a discount to the group.
One should further note that STM currently holds a PEG ratio of 3.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General was holding an average PEG ratio of 2.66 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 99, positioning it in the top 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.