STMicroelectronics (STM - Free Report) closed the most recent trading day at $27.39, moving -1.93% from the previous trading session. This change lagged the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the chip company had gained 2.87% in the past month. In that same time, the Computer and Technology sector gained 7.47%, while the S&P 500 gained 4.56%.
Wall Street will be looking for positivity from STM as it approaches its next earnings report date. This is expected to be January 23, 2020. In that report, analysts expect STM to post earnings of $0.37 per share. This would mark a year-over-year decline of 19.57%. Our most recent consensus estimate is calling for quarterly revenue of $2.68 billion, up 1.27% from the year-ago period.
Investors should also note any recent changes to analyst estimates for STM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.61% higher within the past month. STM is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, STM is currently trading at a Forward P/E ratio of 19.63. This represents a no noticeable deviation compared to its industry's average Forward P/E of 19.63.
Investors should also note that STM has a PEG ratio of 3.93 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.