STMicroelectronics (STM) closed at $47.23 in the latest trading session, marking a +0.4% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.
Heading into today, shares of the chip company had gained 12.29% over the past month, outpacing the Computer and Technology sector's gain of 9.32% and the S&P 500's gain of 3.98% in that time.
Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. The company is expected to report EPS of $1.10, up 19.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.27 billion, up 11.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.25 per share and revenue of $17.25 billion. These totals would mark changes of +1.43% and +6.99%, respectively, from last year.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, STMicroelectronics is currently trading at a Forward P/E ratio of 11.07. For comparison, its industry has an average Forward P/E of 19.35, which means STMicroelectronics is trading at a discount to the group.
Also, we should mention that STM has a PEG ratio of 2.21. 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 2.36 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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