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Silicon Motion (SIMO) Registers a Bigger Fall Than the Market: Important Facts to Note
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Silicon Motion (SIMO - Free Report) ended the recent trading session at $294.90, demonstrating a -7.51% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Shares of the chip company witnessed a gain of 21.14% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.38%, and the S&P 500's gain of 2.14%.
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 $2.09, reflecting a 202.9% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $401.53 million, up 102.1% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.87 per share and a revenue of $1.57 billion, signifying shifts of +149.86% and +77.66%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Within the past 30 days, our consensus EPS projection has moved 3.66% higher. As of now, Silicon Motion holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 35.96. Its industry sports an average Forward P/E of 27.52, so one might conclude that Silicon Motion is trading at a premium comparatively.
We can also see that SIMO currently has a PEG ratio of 0.67. 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. The Computer - Integrated Systems was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 5, finds itself in the top 3% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
View the Zacks #1 Rank List
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Silicon Motion (SIMO) Registers a Bigger Fall Than the Market: Important Facts to Note
Silicon Motion (SIMO - Free Report) ended the recent trading session at $294.90, demonstrating a -7.51% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Shares of the chip company witnessed a gain of 21.14% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.38%, and the S&P 500's gain of 2.14%.
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 $2.09, reflecting a 202.9% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $401.53 million, up 102.1% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.87 per share and a revenue of $1.57 billion, signifying shifts of +149.86% and +77.66%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Within the past 30 days, our consensus EPS projection has moved 3.66% higher. As of now, Silicon Motion holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 35.96. Its industry sports an average Forward P/E of 27.52, so one might conclude that Silicon Motion is trading at a premium comparatively.
We can also see that SIMO currently has a PEG ratio of 0.67. 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. The Computer - Integrated Systems was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 5, finds itself in the top 3% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.