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Silicon Motion (SIMO) Stock Slides as Market Rises: Facts to Know Before You Trade
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Silicon Motion (SIMO - Free Report) closed at $78.09 in the latest trading session, marking a -0.09% move from the prior day. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, lost 0.01%.
The the stock of chip company has risen by 6.49% in the past month, lagging the Computer and Technology sector's gain of 7.71% and overreaching the S&P 500's gain of 4.14%.
The investment community will be paying close attention to the earnings performance of Silicon Motion in its upcoming release. The company is expected to report EPS of $0.88, up 131.58% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $204.23 million, indicating a 45.51% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.47 per share and a revenue of $820.29 million, indicating changes of +52.86% and +28.34%, respectively, from the former year.
Any recent changes to analyst estimates for Silicon Motion should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 4.52% upward. At present, Silicon Motion boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 22.54. This expresses a discount compared to the average Forward P/E of 36.81 of its industry.
We can also see that SIMO currently has a PEG ratio of 0.59. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.83.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Silicon Motion (SIMO) Stock Slides as Market Rises: Facts to Know Before You Trade
Silicon Motion (SIMO - Free Report) closed at $78.09 in the latest trading session, marking a -0.09% move from the prior day. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, lost 0.01%.
The the stock of chip company has risen by 6.49% in the past month, lagging the Computer and Technology sector's gain of 7.71% and overreaching the S&P 500's gain of 4.14%.
The investment community will be paying close attention to the earnings performance of Silicon Motion in its upcoming release. The company is expected to report EPS of $0.88, up 131.58% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $204.23 million, indicating a 45.51% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.47 per share and a revenue of $820.29 million, indicating changes of +52.86% and +28.34%, respectively, from the former year.
Any recent changes to analyst estimates for Silicon Motion should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 4.52% upward. At present, Silicon Motion boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 22.54. This expresses a discount compared to the average Forward P/E of 36.81 of its industry.
We can also see that SIMO currently has a PEG ratio of 0.59. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.83.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.