STMicroelectronics (STM - Free Report) closed the most recent trading day at $15.04, moving -0.46% from the previous trading session. This change was narrower than the S&P 500's 1.32% loss on the day. At the same time, the Dow lost 1.41%, and the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the chip company had lost 17.79% over the past month. This has lagged the Computer and Technology sector's loss of 7.09% and the S&P 500's loss of 5.09% in that time.
STM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, down 31.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, down 6.3% from the year-ago period.
STM's full-year Zacks Consensus Estimates are calling for earnings of $1.06 per share and revenue of $9.09 billion. These results would represent year-over-year changes of -25.87% and -5.98%, respectively.
It is also important to note the recent changes to analyst estimates for STM. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.09% lower within the past month. STM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, STM currently has a Forward P/E ratio of 14.3. This represents a discount compared to its industry's average Forward P/E of 20.35.
Investors should also note that STM has a PEG ratio of 2.86 right now. 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 Semiconductor - General industry currently had an average PEG ratio of 2.38 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.