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Silicon Motion (SIMO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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The latest trading session saw Silicon Motion (SIMO - Free Report) ending at $82.49, denoting a -0.94% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.18%.
The chip company's shares have seen an increase of 6.51% over the last month, not keeping up with the Computer and Technology sector's gain of 6.77% and outstripping the S&P 500's gain of 3.15%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's upcoming EPS is projected at $0.88, signifying a 131.58% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $204.23 million, up 45.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $820.29 million, which would represent changes of +52.86% and +28.34%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Silicon Motion. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Silicon Motion is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 24.01. This represents a discount compared to its industry's average Forward P/E of 40.07.
We can also see that SIMO currently has a PEG ratio of 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 2.91 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Silicon Motion (SIMO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The latest trading session saw Silicon Motion (SIMO - Free Report) ending at $82.49, denoting a -0.94% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.18%.
The chip company's shares have seen an increase of 6.51% over the last month, not keeping up with the Computer and Technology sector's gain of 6.77% and outstripping the S&P 500's gain of 3.15%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's upcoming EPS is projected at $0.88, signifying a 131.58% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $204.23 million, up 45.51% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $820.29 million, which would represent changes of +52.86% and +28.34%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Silicon Motion. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Silicon Motion is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 24.01. This represents a discount compared to its industry's average Forward P/E of 40.07.
We can also see that SIMO currently has a PEG ratio of 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 2.91 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.