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Silicon Motion (SIMO) Dips More Than Broader Market: What You Should Know
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Silicon Motion (SIMO - Free Report) ended the recent trading session at $261.89, demonstrating a -8.36% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.47%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 1.25%.
The stock of chip company has risen by 2.91% in the past month, lagging the Computer and Technology sector's gain of 6.08% and overreaching the S&P 500's gain of 1.15%.
The investment community will be closely monitoring the performance of Silicon Motion in its forthcoming earnings report. In that report, analysts expect Silicon Motion to post earnings of $3.3 per share. This would mark year-over-year growth of 230%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $532.81 million, up 120.17% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.16 per share and a revenue of $1.89 billion, indicating changes of +214.37% and +112.86%, respectively, from the former 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Silicon Motion is currently a Zacks Rank #3 (Hold).
Investors should also note Silicon Motion's current valuation metrics, including its Forward P/E ratio of 25.62. This signifies a premium in comparison to the average Forward P/E of 20.65 for its industry.
It is also worth noting that SIMO currently has a PEG ratio of 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.56.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Silicon Motion (SIMO) Dips More Than Broader Market: What You Should Know
Silicon Motion (SIMO - Free Report) ended the recent trading session at $261.89, demonstrating a -8.36% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.47%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 1.25%.
The stock of chip company has risen by 2.91% in the past month, lagging the Computer and Technology sector's gain of 6.08% and overreaching the S&P 500's gain of 1.15%.
The investment community will be closely monitoring the performance of Silicon Motion in its forthcoming earnings report. In that report, analysts expect Silicon Motion to post earnings of $3.3 per share. This would mark year-over-year growth of 230%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $532.81 million, up 120.17% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.16 per share and a revenue of $1.89 billion, indicating changes of +214.37% and +112.86%, respectively, from the former 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Silicon Motion is currently a Zacks Rank #3 (Hold).
Investors should also note Silicon Motion's current valuation metrics, including its Forward P/E ratio of 25.62. This signifies a premium in comparison to the average Forward P/E of 20.65 for its industry.
It is also worth noting that SIMO currently has a PEG ratio of 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.56.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.