Yahoo Finance STMicroelectronics (STM) Gains As Market Dips: What You Should Know
STMicroelectronics (STM) closed at $47.84 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500's 0.29% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 1.24%.
Heading into today, shares of the chip company had gained 0.66% over the past month, lagging the Computer and Technology sector's gain of 1.61% and the S&P 500's gain of 3.1% in that time.
STMicroelectronics will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. On that day, STMicroelectronics is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 19.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.27 billion, up 11.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.25 per share and revenue of $17.25 billion, which would represent changes of +1.43% and +6.99%, respectively, from the prior year.
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.
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 remained stagnant. STMicroelectronics is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note STMicroelectronics's current valuation metrics, including its Forward P/E ratio of 11.15. Its industry sports an average Forward P/E of 23.37, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
Meanwhile, STM's PEG ratio is currently 2.23. 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 2.45 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 83, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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STMicroelectronics N.V. (STM) : Free Stock Analysis Report
