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Stellantis (STLA) Outpaces Stock Market Gains: What You Should Know

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Stellantis (STLA - Free Report) closed the most recent trading day at $16.35, moving +0.49% from the previous trading session. This change outpaced the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the automaker had lost 1.21% over the past month, lagging the Auto-Tires-Trucks sector's gain of 7.53% and the S&P 500's gain of 3.75% in that time.

Wall Street will be looking for positivity from Stellantis as it approaches its next earnings report date.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.25 per share and revenue of $176.17 billion. These totals would mark changes of -15% and -0.35%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Stellantis. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 6.19% lower. Stellantis is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Stellantis is currently trading at a Forward P/E ratio of 3.83. This valuation marks a discount compared to its industry's average Forward P/E of 9.89.

It is also worth noting that STLA currently has a PEG ratio of 0.1. 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 0.48 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 171, 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 Zacks.com.


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