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Silicon Motion (SIMO) Stock Sinks As Market Gains: Here's Why
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Silicon Motion (SIMO - Free Report) closed the most recent trading day at $79.64, moving -0.23% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.
The chip company's stock has dropped by 4.15% in the past month, falling short of the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82%.
The investment community will be closely monitoring the performance of Silicon Motion in its forthcoming earnings report. The company is scheduled to release its earnings on August 1, 2024. The company's upcoming EPS is projected at $0.94, signifying a 147.37% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $208.31 million, indicating a 48.41% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.55 per share and a revenue of $822.69 million, indicating changes of +56.39% and +28.72%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Silicon Motion. 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.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.8% higher. As of now, Silicon Motion holds a Zacks Rank of #2 (Buy).
With respect to valuation, Silicon Motion is currently being traded at a Forward P/E ratio of 22.47. This indicates a discount in contrast to its industry's Forward P/E of 38.2.
One should further note that SIMO currently holds a PEG ratio of 0.59. 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. The average PEG ratio for the Electronics - Semiconductors industry stood at 2.84 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 SIMO in the coming trading sessions, be sure to utilize Zacks.com.
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Silicon Motion (SIMO) Stock Sinks As Market Gains: Here's Why
Silicon Motion (SIMO - Free Report) closed the most recent trading day at $79.64, moving -0.23% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.
The chip company's stock has dropped by 4.15% in the past month, falling short of the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82%.
The investment community will be closely monitoring the performance of Silicon Motion in its forthcoming earnings report. The company is scheduled to release its earnings on August 1, 2024. The company's upcoming EPS is projected at $0.94, signifying a 147.37% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $208.31 million, indicating a 48.41% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.55 per share and a revenue of $822.69 million, indicating changes of +56.39% and +28.72%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Silicon Motion. 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.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.8% higher. As of now, Silicon Motion holds a Zacks Rank of #2 (Buy).
With respect to valuation, Silicon Motion is currently being traded at a Forward P/E ratio of 22.47. This indicates a discount in contrast to its industry's Forward P/E of 38.2.
One should further note that SIMO currently holds a PEG ratio of 0.59. 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. The average PEG ratio for the Electronics - Semiconductors industry stood at 2.84 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 SIMO in the coming trading sessions, be sure to utilize Zacks.com.