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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
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STMicroelectronics (STM - Free Report) closed the most recent trading day at $42.76, moving -1.06% from the previous trading session. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Heading into today, shares of the chip company had gained 7.09% over the past month, outpacing the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release. In that report, analysts expect STMicroelectronics to post earnings of $0.70 per share. This would mark year-over-year growth of 79.49%. Meanwhile, our latest consensus estimate is calling for revenue of $3.52 billion, up 16.81% from the prior-year quarter.
STM's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $14.82 billion. These results would represent year-over-year changes of +49.54% and +16.11%, respectively.
Investors might also notice recent changes to analyst estimates for STMicroelectronics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, STMicroelectronics currently has a Forward P/E ratio of 13.37. For comparison, its industry has an average Forward P/E of 14.78, which means STMicroelectronics is trading at a discount to the group.
Meanwhile, STM's PEG ratio is currently 2.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.42 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 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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STMicroelectronics (STM) Stock Sinks As Market Gains: What You Should Know
STMicroelectronics (STM - Free Report) closed the most recent trading day at $42.76, moving -1.06% from the previous trading session. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Heading into today, shares of the chip company had gained 7.09% over the past month, outpacing the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% in that time.
Investors will be hoping for strength from STMicroelectronics as it approaches its next earnings release. In that report, analysts expect STMicroelectronics to post earnings of $0.70 per share. This would mark year-over-year growth of 79.49%. Meanwhile, our latest consensus estimate is calling for revenue of $3.52 billion, up 16.81% from the prior-year quarter.
STM's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $14.82 billion. These results would represent year-over-year changes of +49.54% and +16.11%, respectively.
Investors might also notice recent changes to analyst estimates for STMicroelectronics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. STMicroelectronics is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, STMicroelectronics currently has a Forward P/E ratio of 13.37. For comparison, its industry has an average Forward P/E of 14.78, which means STMicroelectronics is trading at a discount to the group.
Meanwhile, STM's PEG ratio is currently 2.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - General stocks are, on average, holding a PEG ratio of 2.42 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 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.