U.S. markets closed
  • S&P 500

    3,744.52
    -38.76 (-1.02%)
     
  • Dow 30

    29,926.94
    -346.93 (-1.15%)
     
  • Nasdaq

    11,073.31
    -75.33 (-0.68%)
     
  • Russell 2000

    1,752.51
    -10.18 (-0.58%)
     
  • Crude Oil

    88.96
    +1.20 (+1.37%)
     
  • Gold

    1,720.90
    +0.10 (+0.01%)
     
  • Silver

    20.69
    +0.15 (+0.71%)
     
  • EUR/USD

    0.9791
    -0.0093 (-0.94%)
     
  • 10-Yr Bond

    3.8260
    +0.0670 (+1.78%)
     
  • GBP/USD

    1.1163
    -0.0158 (-1.40%)
     
  • USD/JPY

    145.1150
    +0.5050 (+0.35%)
     
  • BTC-USD

    20,019.77
    -25.31 (-0.13%)
     
  • CMC Crypto 200

    456.11
    -7.01 (-1.51%)
     
  • FTSE 100

    6,997.27
    -55.35 (-0.78%)
     
  • Nikkei 225

    27,311.30
    +190.80 (+0.70%)
     

STMicroelectronics (STM) Gains But Lags Market: What You Should Know

·3 min read

STMicroelectronics (STM) closed the most recent trading day at $37.38, moving +0.86% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.18%.

Heading into today, shares of the chip company had lost 4.39% over the past month, lagging the Computer and Technology sector's loss of 4.33% and the S&P 500's loss of 1.14% 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 $1.05 per share, which would represent year-over-year growth of 105.88%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $16.06 billion. These totals would mark changes of +79.63% and +25.88%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for STMicroelectronics. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that STMicroelectronics has a Forward P/E ratio of 9.54 right now. This represents a discount compared to its industry's average Forward P/E of 12.27.

It is also worth noting that STM currently has a PEG ratio of 1.91. 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. Semiconductor - General stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
STMicroelectronics N.V. (STM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research