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Silicon Motion (SIMO) Gains As Market Dips: What You Should Know
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Silicon Motion (SIMO - Free Report) closed at $76.68 in the latest trading session, marking a +0.68% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Heading into today, shares of the chip company had gained 10.75% over the past month, outpacing the Computer and Technology sector's loss of 5.18% and the S&P 500's gain of 0.08% in that time.
Silicon Motion will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $1.52, up 36.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $234.5 million, up 28.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.75 per share and revenue of $1.14 billion. These totals would mark changes of +24.8% and +23.85%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Silicon Motion. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Silicon Motion is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 9.83. This valuation marks a discount compared to its industry's average Forward P/E of 17.42.
Also, we should mention that SIMO has a PEG ratio of 1.09. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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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Silicon Motion (SIMO) Gains As Market Dips: What You Should Know
Silicon Motion (SIMO - Free Report) closed at $76.68 in the latest trading session, marking a +0.68% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Heading into today, shares of the chip company had gained 10.75% over the past month, outpacing the Computer and Technology sector's loss of 5.18% and the S&P 500's gain of 0.08% in that time.
Silicon Motion will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $1.52, up 36.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $234.5 million, up 28.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.75 per share and revenue of $1.14 billion. These totals would mark changes of +24.8% and +23.85%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Silicon Motion. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Silicon Motion is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 9.83. This valuation marks a discount compared to its industry's average Forward P/E of 17.42.
Also, we should mention that SIMO has a PEG ratio of 1.09. 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. The Electronics - Semiconductors was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.