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Why Silicon Motion (SIMO) Dipped More Than Broader Market Today
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Silicon Motion (SIMO - Free Report) ended the recent trading session at $59.57, demonstrating a -1.93% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.93%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 1.53%.
The chip company's shares have seen a decrease of 4.45% over the last month, not keeping up with the Computer and Technology sector's gain of 2.77% and the S&P 500's gain of 2.17%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's upcoming EPS is projected at $0.84, signifying a 33.33% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $209.44 million, reflecting a 21.54% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.45 per share and revenue of $817.55 million, indicating changes of +51.98% and +27.91%, respectively, compared to the previous year.
It is also important to note the recent changes to 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.96% downward. As of now, Silicon Motion holds a Zacks Rank of #3 (Hold).
In terms of valuation, Silicon Motion is presently being traded at a Forward P/E ratio of 17.6. For comparison, its industry has an average Forward P/E of 32.63, which means Silicon Motion is trading at a discount to the group.
It is also worth noting that SIMO currently has a PEG ratio of 0.79. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.17.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 45% of over 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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Why Silicon Motion (SIMO) Dipped More Than Broader Market Today
Silicon Motion (SIMO - Free Report) ended the recent trading session at $59.57, demonstrating a -1.93% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.93%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 1.53%.
The chip company's shares have seen a decrease of 4.45% over the last month, not keeping up with the Computer and Technology sector's gain of 2.77% and the S&P 500's gain of 2.17%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's upcoming EPS is projected at $0.84, signifying a 33.33% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $209.44 million, reflecting a 21.54% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.45 per share and revenue of $817.55 million, indicating changes of +51.98% and +27.91%, respectively, compared to the previous year.
It is also important to note the recent changes to 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.96% downward. As of now, Silicon Motion holds a Zacks Rank of #3 (Hold).
In terms of valuation, Silicon Motion is presently being traded at a Forward P/E ratio of 17.6. For comparison, its industry has an average Forward P/E of 32.63, which means Silicon Motion is trading at a discount to the group.
It is also worth noting that SIMO currently has a PEG ratio of 0.79. 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. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 2.17.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 45% of over 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.