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) Stock Dips While Market Gains: Key Facts
Read MoreHide Full Article
STMicroelectronics (STM - Free Report) ended the recent trading session at $44.58, demonstrating a -0.6% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.82%.
The chip company's shares have seen a decrease of 0.73% over the last month, not keeping up with the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of STMicroelectronics in its upcoming earnings disclosure. The company is expected to report EPS of $0.59, down 46.36% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.6 billion, indicating a 15.16% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.06 per share and a revenue of $16.23 billion, signifying shifts of -31.39% and -6.11%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. STMicroelectronics is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 14.68. Its industry sports an average Forward P/E of 29.44, so one might conclude that STMicroelectronics is trading at a discount comparatively.
Investors should also note that STM has a PEG ratio of 2.94 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.
Be sure to follow all of these stock-moving metrics, and many 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) Stock Dips While Market Gains: Key Facts
STMicroelectronics (STM - Free Report) ended the recent trading session at $44.58, demonstrating a -0.6% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.82%.
The chip company's shares have seen a decrease of 0.73% over the last month, not keeping up with the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of STMicroelectronics in its upcoming earnings disclosure. The company is expected to report EPS of $0.59, down 46.36% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.6 billion, indicating a 15.16% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.06 per share and a revenue of $16.23 billion, signifying shifts of -31.39% and -6.11%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for STMicroelectronics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. STMicroelectronics is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 14.68. Its industry sports an average Forward P/E of 29.44, so one might conclude that STMicroelectronics is trading at a discount comparatively.
Investors should also note that STM has a PEG ratio of 2.94 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.