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Why Stellantis (STLA) Dipped More Than Broader Market Today

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In the latest close session, Stellantis (STLA - Free Report) was down 7.37% at $9.81. The stock trailed the S&P 500, which registered a daily loss of 2.71%. Elsewhere, the Dow saw a downswing of 1.9%, while the tech-heavy Nasdaq depreciated by 3.56%.

Shares of the automaker witnessed a gain of 10.66% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 14.16%, and outperforming the S&P 500's gain of 3.5%.

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 October 30, 2025.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.15 per share and a revenue of $176.2 billion, indicating changes of -57.09% and -14.1%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Stellantis. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Stellantis is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Stellantis is presently trading at a Forward P/E ratio of 9.24. This valuation marks a discount compared to its industry average Forward P/E of 12.31.

We can also see that STLA currently has a PEG ratio of 0.67. 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. As the market closed yesterday, the Automotive - Foreign industry was having an average PEG ratio of 1.02.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 24% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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