Yahoo Finance STMicroelectronics (STM) Suffers a Larger Drop Than the General Market: Key Insights
STMicroelectronics (STM) ended the recent trading session at $42.93, demonstrating a -0.85% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.31%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 0.27%.
The the stock of chip company has fallen by 3.24% in the past month, lagging the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
Market participants will be closely following the financial results of STMicroelectronics in its upcoming release. In that report, analysts expect STMicroelectronics to post earnings of $0.59 per share. This would mark a year-over-year decline of 46.36%. At the same time, our most recent consensus estimate is projecting a revenue of $3.6 billion, reflecting a 15.16% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.06 per share and revenue of $16.23 billion, which would represent changes of -31.39% and -6.11%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for STMicroelectronics. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, STMicroelectronics holds a Zacks Rank of #5 (Strong Sell).
Looking at valuation, STMicroelectronics is presently trading at a Forward P/E ratio of 14.17. This expresses a discount compared to the average Forward P/E of 29.64 of its industry.
Also, we should mention that STM has a PEG ratio of 2.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Semiconductor - General industry stood at 2.49 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 39% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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STMicroelectronics N.V. (STM) : Free Stock Analysis Report
