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

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Stellantis (STLA - Free Report) closed the most recent trading day at $14, moving -0.14% from the previous trading session. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the automaker had lost 11.6% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 4.05% and the S&P 500's loss of 5.26% in that time.

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

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.25 per share and revenue of $176.17 billion, which would represent changes of -15% and +76.45%, respectively, from the prior year.

Any recent changes to analyst estimates for Stellantis should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Stellantis is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Stellantis currently has a Forward P/E ratio of 3.3. For comparison, its industry has an average Forward P/E of 7.89, which means Stellantis is trading at a discount to the group.

We can also see that STLA currently has a PEG ratio of 0.09. 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. Automotive - Foreign stocks are, on average, holding a PEG ratio of 0.34 based on yesterday's closing prices.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% 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.

To follow STLA in the coming trading sessions, be sure to utilize Zacks.com.


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