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Stellantis (STLA) Gains But Lags Market: What You Should Know

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In the latest trading session, Stellantis (STLA - Free Report) closed at $15.45, marking a +1.85% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.

Prior to today's trading, shares of the automaker had gained 2.22% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 20.56% and the S&P 500's loss of 4.61% in that time.

Investors will be hoping for strength from Stellantis as it approaches its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.25 per share and revenue of $182.5 billion. These totals would mark changes of +5% and +3.23%, respectively, from last year.

Any recent changes to analyst estimates for Stellantis should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 21.06% higher. Stellantis is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Stellantis is holding a Forward P/E ratio of 2.89. Its industry sports an average Forward P/E of 6.75, so we one might conclude that Stellantis is trading at a discount comparatively.

It is also worth noting that STLA currently has a PEG ratio of 0.87. 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. STLA's industry had an average PEG ratio of 0.87 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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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