Yahoo Finance STMicroelectronics (STM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, STMicroelectronics (STM) closed at $50.59, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the chip company had gained 3.23% over the past month. This has lagged the Computer and Technology sector's gain of 4% and the S&P 500's gain of 6.17% 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. The company is expected to report EPS of $0.97, up 22.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $17.05 billion. These totals would mark changes of -3.1% and +5.71%, respectively, from last year.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% higher. STMicroelectronics is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, STMicroelectronics currently has a Forward P/E ratio of 12.42. This represents a discount compared to its industry's average Forward P/E of 18.08.
Meanwhile, STM's PEG ratio is currently 2.48. 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 2.99 at yesterday's closing price.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 35% 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
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STMicroelectronics N.V. (STM) : Free Stock Analysis Report
