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Silicon Motion (SIMO) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Silicon Motion (SIMO - Free Report) closed at $93.76, marking a +1.14% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.
The chip company's shares have seen an increase of 1.85% over the last month, surpassing the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 43.96% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $260.55 million, indicating a 36.3% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.55 per share and a revenue of $863.29 million, signifying shifts of +3.5% and 0%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Silicon Motion. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Silicon Motion currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Silicon Motion has a Forward P/E ratio of 19 right now. This valuation marks a discount compared to its industry average Forward P/E of 21.6.
One should further note that SIMO currently holds a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.85.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
To follow SIMO in the coming trading sessions, be sure to utilize Zacks.com.
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Silicon Motion (SIMO) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Silicon Motion (SIMO - Free Report) closed at $93.76, marking a +1.14% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.
The chip company's shares have seen an increase of 1.85% over the last month, surpassing the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 43.96% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $260.55 million, indicating a 36.3% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.55 per share and a revenue of $863.29 million, signifying shifts of +3.5% and 0%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Silicon Motion. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Silicon Motion currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Silicon Motion has a Forward P/E ratio of 19 right now. This valuation marks a discount compared to its industry average Forward P/E of 21.6.
One should further note that SIMO currently holds a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.85.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
To follow SIMO in the coming trading sessions, be sure to utilize Zacks.com.