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Stellantis (STLA) Stock Slides as Market Rises: Facts to Know Before You Trade

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Stellantis (STLA - Free Report) closed at $11.09 in the latest trading session, marking a -1.95% move from the prior day. This change lagged the S&P 500's 0.62% gain on the day. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.

Coming into today, shares of the automaker had lost 5.28% in the past month. In that same time, the Auto-Tires-Trucks sector gained 1.07%, while the S&P 500 gained 0.59%.

Analysts and investors alike will be keeping a close eye on the performance of Stellantis in its upcoming earnings disclosure.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $179.49 billion. These totals would mark changes of -35.82% and +5.72%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Stellantis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Stellantis presently features a Zacks Rank of #4 (Sell).

Investors should also note Stellantis's current valuation metrics, including its Forward P/E ratio of 6.59. This indicates a discount in contrast to its industry's Forward P/E of 12.2.

Meanwhile, STLA's PEG ratio is currently 0.48. 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 of the close of trade yesterday, the Automotive - Foreign industry held an average PEG ratio of 1.13.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 225, placing it within the bottom 9% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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