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

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In the latest trading session, Stellantis (STLA) closed at $12.26, marking a +1.41% move from the previous day. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the automaker had lost 6.28% in the past month. In that same time, the Auto-Tires-Trucks sector gained 0.15%, while the S&P 500 gained 2.02%.

Stellantis will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.21 per share and revenue of $170.96 billion, which would represent changes of -15.8% and +71.23%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Stellantis. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 3.11% lower. Stellantis is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Stellantis's current valuation metrics, including its Forward P/E ratio of 2.88. Its industry sports an average Forward P/E of 7.09, so we one might conclude that Stellantis is trading at a discount comparatively.

Meanwhile, STLA's PEG ratio is currently 0.08. 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. STLA's industry had an average PEG ratio of 0.54 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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