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Stellantis (STLA) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3-min read

Stellantis (STLA) closed at $12.89 in the latest trading session, marking a -1.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the automaker had lost 8.43% in the past month. In that same time, the Auto-Tires-Trucks sector gained 3.29%, while the S&P 500 lost 3.49%.

Investors will be hoping for strength from Stellantis as it approaches its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.34 per share and revenue of $176.5 billion. These totals would mark changes of -13.2% and +76.78%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for Stellantis. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 remained stagnant within the past month. Stellantis is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Stellantis currently has a Forward P/E ratio of 3.03. This represents a discount compared to its industry's average Forward P/E of 7.41.

It is also worth noting that STLA currently has a PEG ratio of 0.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Foreign was holding an average PEG ratio of 0.55 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% 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 STLA in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research