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Stellantis (STLA) Stock Sinks As Market Gains: Here's Why

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Stellantis (STLA - Free Report) closed at $9.58 in the latest trading session, marking a -7.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, added 0.18%.

Coming into today, shares of the automaker had gained 4.87% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.96%, while the S&P 500 gained 5.71%.

The investment community will be paying close attention to the earnings performance of Stellantis in its upcoming release. The company is slated to reveal its earnings on July 29, 2025.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.6 per share and revenue of $180.52 billion. These totals would mark changes of -40.3% and -11.99%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Stellantis. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 21.43% decrease. Right now, Stellantis possesses a Zacks Rank of #4 (Sell).

Digging into valuation, Stellantis currently has a Forward P/E ratio of 6.48. For comparison, its industry has an average Forward P/E of 10.47, which means Stellantis is trading at a discount to the group.

It is also worth noting that STLA currently has a PEG ratio of 0.47. 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 Automotive - Foreign industry had an average PEG ratio of 1.1 as trading concluded yesterday.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 228, this industry ranks in the bottom 8% of all industries, numbering over 250.

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.

To follow STLA in the coming trading sessions, be sure to utilize Zacks.com.


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