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Silicon Motion (SIMO) Declines More Than Market: Some Information for Investors

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Silicon Motion (SIMO - Free Report) closed the most recent trading day at $85.73, moving -8.96% from the previous trading session. This change lagged the S&P 500's 2.71% loss on the day. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.

Coming into today, shares of the chip company had gained 5.71% in the past month. In that same time, the Computer and Technology sector gained 6.22%, while the S&P 500 gained 3.5%.

The investment community will be paying close attention to the earnings performance of Silicon Motion in its upcoming release. The company is slated to reveal its earnings on October 30, 2025. It is anticipated that the company will report an EPS of $0.88, marking a 4.35% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $227.87 million, indicating a 7.28% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.35 per share and a revenue of $840.76 million, indicating changes of -2.33% and +4.63%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Silicon Motion is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Silicon Motion is currently exchanging hands at a Forward P/E ratio of 28.09. Its industry sports an average Forward P/E of 23.49, so one might conclude that Silicon Motion is trading at a premium comparatively.

It's also important to note that SIMO currently trades at a PEG ratio of 3.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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