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Stellantis (STLA) Gains As Market Dips: What You Should Know

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In the latest market close, Stellantis (STLA - Free Report) reached $25.77, with a +0.08% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.88%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, lost 2.05%.

The automaker's shares have seen a decrease of 11.85% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 7.97% and the S&P 500's loss of 2.57%.

The investment community will be closely monitoring the performance of Stellantis in its forthcoming earnings report. The company is scheduled to release its earnings on April 30, 2024.

For the full year, the Zacks Consensus Estimates project earnings of $6.16 per share and a revenue of $206.73 billion, demonstrating changes of -4.2% and +9.24%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Stellantis. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.32% lower. Stellantis is currently a Zacks Rank #3 (Hold).

Digging into valuation, Stellantis currently has a Forward P/E ratio of 4.18. This signifies a discount in comparison to the average Forward P/E of 6.19 for its industry.

We can also see that STLA currently has a PEG ratio of 0.33. 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 average PEG ratio for the Automotive - Foreign industry stood at 0.34 at the close of the market yesterday.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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