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Stellantis (STLA) Dips More Than Broader Markets: What You Should Know

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Stellantis (STLA - Free Report) closed at $18.40 in the latest trading session, marking a -1.55% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the automaker had lost 14.11% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 16.39% and lagging the S&P 500's loss of 6.25% in that time.

Investors will be hoping for strength from Stellantis as it approaches its next earnings release, which is expected to be February 23, 2022.

It is also important to note the recent changes to analyst estimates for Stellantis. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. Stellantis currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Stellantis is currently trading at a Forward P/E ratio of 4.47. This valuation marks a discount compared to its industry's average Forward P/E of 10.58.

Meanwhile, STLA's PEG ratio is currently 0.12. 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 Automotive - Foreign was holding an average PEG ratio of 0.4 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 204, which puts it in the bottom 20% 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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