Yahoo Finance Silicon Motion (SIMO) Gains But Lags Market: What You Should Know
Silicon Motion (SIMO) closed the latest trading day at $80.57, indicating a +1% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.18%.
The chip company's shares have seen a decrease of 4.12% over the last month, not keeping up with the Computer and Technology sector's gain of 8.46% and the S&P 500's gain of 4.44%.
The investment community will be paying close attention to the earnings performance of Silicon Motion in its upcoming release. The company is slated to reveal its earnings on August 1, 2024. On that day, Silicon Motion is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 142.11%. At the same time, our most recent consensus estimate is projecting a revenue of $205.93 million, reflecting a 46.72% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.51 per share and revenue of $820.29 million. These totals would mark changes of +54.63% and +28.34%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Silicon Motion. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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, there's been no change in the Zacks Consensus EPS estimate. Silicon Motion is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 22.74. This signifies a discount in comparison to the average Forward P/E of 37.85 for its industry.
It is also worth noting that SIMO currently has a PEG ratio of 0.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Semiconductors industry was having an average PEG ratio of 2.93.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 26% echelons 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.
To follow SIMO in the coming trading sessions, be sure to utilize Zacks.com.
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Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report
