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STMicroelectronics (STM) Flat As Market Gains: What You Should Know

STMicroelectronics (STM) closed at $49.21 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.

Heading into today, shares of the chip company had gained 3.69% over the past month, lagging the Computer and Technology sector's gain of 8.4% and outpacing the S&P 500's gain of 0.25% in that time.

Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. On that day, STMicroelectronics is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 21.52%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $17.05 billion, which would represent changes of -3.34% and +5.71%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for STMicroelectronics. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. STMicroelectronics is currently a Zacks Rank #3 (Hold).

Digging into valuation, STMicroelectronics currently has a Forward P/E ratio of 12.16. This valuation marks a discount compared to its industry's average Forward P/E of 23.84.

Investors should also note that STM has a PEG ratio of 2.43 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - General industry currently had an average PEG ratio of 2.98 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 195, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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STMicroelectronics N.V. (STM) : Free Stock Analysis Report

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