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Silicon Motion (SIMO) Laps the Stock Market: Here's Why
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In the latest trading session, Silicon Motion (SIMO - Free Report) closed at $74.67, marking a +1.84% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.38%.
Prior to today's trading, shares of the chip company had gained 4.8% lagged the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.
The upcoming earnings release of Silicon Motion will be of great interest to investors. The company's earnings report is expected on July 30, 2025. In that report, analysts expect Silicon Motion to post earnings of $0.52 per share. This would mark a year-over-year decline of 45.83%. Meanwhile, the latest consensus estimate predicts the revenue to be $180.4 million, indicating a 14.37% decrease compared to the same quarter of the previous year.
SIMO's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $815.03 million. These results would represent year-over-year changes of -0.58% and +1.43%, respectively.
It is also important to note the recent changes to analyst estimates for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. Silicon Motion presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 21.48. This represents a premium compared to its industry average Forward P/E of 19.71.
We can also see that SIMO currently has a PEG ratio of 10.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 4.27 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Silicon Motion (SIMO) Laps the Stock Market: Here's Why
In the latest trading session, Silicon Motion (SIMO - Free Report) closed at $74.67, marking a +1.84% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.38%.
Prior to today's trading, shares of the chip company had gained 4.8% lagged the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.
The upcoming earnings release of Silicon Motion will be of great interest to investors. The company's earnings report is expected on July 30, 2025. In that report, analysts expect Silicon Motion to post earnings of $0.52 per share. This would mark a year-over-year decline of 45.83%. Meanwhile, the latest consensus estimate predicts the revenue to be $180.4 million, indicating a 14.37% decrease compared to the same quarter of the previous year.
SIMO's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $815.03 million. These results would represent year-over-year changes of -0.58% and +1.43%, respectively.
It is also important to note the recent changes to analyst estimates for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. Silicon Motion presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 21.48. This represents a premium compared to its industry average Forward P/E of 19.71.
We can also see that SIMO currently has a PEG ratio of 10.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 4.27 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.