Yahoo Finance STMicroelectronics (STM) Gains But Lags Market: What You Should Know
In the latest trading session, STMicroelectronics (STM) closed at $47.45, marking a +0.02% move from the previous day. The stock lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.98%.
Prior to today's trading, shares of the chip company had lost 6.8% over the past month. This has lagged the Computer and Technology sector's gain of 2.75% and the S&P 500's gain of 4.59% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect STMicroelectronics to post earnings of $0.97 per share. This would mark year-over-year growth of 22.78%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.06 per share and revenue of $17.05 billion, which would represent changes of -3.1% and +5.71%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for STMicroelectronics. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.37% higher within the past month. STMicroelectronics currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 11.68. This valuation marks a discount compared to its industry's average Forward P/E of 17.7.
It is also worth noting that STM currently has a PEG ratio of 2.34. 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 was holding an average PEG ratio of 2.97 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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STMicroelectronics N.V. (STM) : Free Stock Analysis Report
