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

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In the latest trading session, Stellantis (STLA - Free Report) closed at $17.84, marking a +1.08% move from the previous day. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 2.19%.

Heading into today, shares of the automaker had gained 0.28% over the past month, lagging the Auto-Tires-Trucks sector's gain of 6.1% and the S&P 500's gain of 3.13% in that time.

Stellantis will be looking to display strength as it nears its next earnings release.

STLA's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $190.08 billion. These results would represent year-over-year changes of -19.64% and +7.52%, respectively.

Investors should also note any recent changes to analyst estimates for Stellantis. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Stellantis currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Stellantis has a Forward P/E ratio of 3.93 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.74.

We can also see that STLA currently has a PEG ratio of 1.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. STLA's industry had an average PEG ratio of 1.94 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 83, putting it in the top 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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