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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know

STMicroelectronics (STM) closed at $44.91 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 2.12%, and the Nasdaq, a tech-heavy index, added 5.41%.

Heading into today, shares of the chip company had gained 8.76% over the past month, lagging the Computer and Technology sector's gain of 10.26% and outpacing the S&P 500's gain of 1.53% in that time.

Wall Street will be looking for positivity from STMicroelectronics as it approaches its next earnings report date. 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, our latest consensus estimate is calling for revenue of $4.27 billion, up 11.36% from the prior-year quarter.

STM's full-year Zacks Consensus Estimates are calling for earnings of $4.25 per share and revenue of $17.25 billion. These results would represent year-over-year changes of +1.43% and +6.99%, respectively.

Investors might also notice recent changes to analyst estimates for STMicroelectronics. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. STMicroelectronics is currently a Zacks Rank #3 (Hold).

Looking at its valuation, STMicroelectronics is holding a Forward P/E ratio of 10.58. This valuation marks a discount compared to its industry's average Forward P/E of 19.23.

We can also see that STM currently has a PEG ratio of 2.12. 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 Semiconductor - General was holding an average PEG ratio of 2.42 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 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

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