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United Microelectronics Corporation (UMC) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, United Microelectronics Corporation (UMC - Free Report) closed at $8.15, marking a +1.75% move from the previous day. This change outpaced the S&P 500's 1.61% gain on the day. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.

Coming into today, shares of the company had lost 14.88% in the past month. In that same time, the Computer and Technology sector lost 6.03%, while the S&P 500 lost 1.42%.

United Microelectronics Corporation will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2022. In that report, analysts expect United Microelectronics Corporation to post earnings of $0.26 per share. This would mark year-over-year growth of 73.33%. Meanwhile, our latest consensus estimate is calling for revenue of $2.23 billion, up 35.11% from the prior-year quarter.

UMC's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $9.17 billion. These results would represent year-over-year changes of +34.94% and +20.37%, respectively.

It is also important to note the recent changes to analyst estimates for United Microelectronics Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 3.7% higher within the past month. United Microelectronics Corporation is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, United Microelectronics Corporation is currently trading at a Forward P/E ratio of 7.15. This valuation marks a discount compared to its industry's average Forward P/E of 17.38.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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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