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STMicroelectronics (STM) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, STMicroelectronics (STM - Free Report) closed at $30.63, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Coming into today, shares of the chip company had lost 12.52% in the past month. In that same time, the Computer and Technology sector lost 14.71%, while the S&P 500 lost 11.67%.
STMicroelectronics will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect STMicroelectronics to post earnings of $1.05 per share. This would mark year-over-year growth of 105.88%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $16.06 billion. These totals would mark changes of +79.63% and +25.88%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for STMicroelectronics. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 7.94. Its industry sports an average Forward P/E of 8.84, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
It is also worth noting that STM currently has a PEG ratio of 1.59. 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. STM's industry had an average PEG ratio of 1.68 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
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STMicroelectronics (STM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, STMicroelectronics (STM - Free Report) closed at $30.63, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Coming into today, shares of the chip company had lost 12.52% in the past month. In that same time, the Computer and Technology sector lost 14.71%, while the S&P 500 lost 11.67%.
STMicroelectronics will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect STMicroelectronics to post earnings of $1.05 per share. This would mark year-over-year growth of 105.88%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $16.06 billion. These totals would mark changes of +79.63% and +25.88%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for STMicroelectronics. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 7.94. Its industry sports an average Forward P/E of 8.84, so we one might conclude that STMicroelectronics is trading at a discount comparatively.
It is also worth noting that STM currently has a PEG ratio of 1.59. 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. STM's industry had an average PEG ratio of 1.68 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% 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.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.