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Stellantis (STLA) Dips More Than Broader Markets: What You Should Know

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Stellantis (STLA - Free Report) closed the most recent trading day at $18.76, moving -0.79% from the previous trading session. This change lagged the S&P 500's 0.1% loss on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 5.8%.

Heading into today, shares of the automaker had gained 10.2% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.64% and outpacing the S&P 500's gain of 3.39% in that time.

Stellantis will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2023.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.30 per share and revenue of $207.9 billion. These totals would mark changes of -5.36% and +17.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Stellantis. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 has moved 7.94% higher. Stellantis is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Stellantis currently has a Forward P/E ratio of 3.57. This represents a discount compared to its industry's average Forward P/E of 6.81.

Investors should also note that STLA has a PEG ratio of 1.77 right now. 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 Automotive - Foreign was holding an average PEG ratio of 0.53 at yesterday's closing price.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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 STLA in the coming trading sessions, be sure to utilize Zacks.com.


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