Silicon Motion (SIMO) closed the most recent trading day at $72.80, moving -1.41% from the previous trading session. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.24%.
The chip company's stock has climbed by 0.96% in the past month, falling short of the Computer and Technology sector's gain of 6.84% and the S&P 500's gain of 4.61%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company plans to announce its earnings on July 30, 2025. The company's upcoming EPS is projected at $0.52, signifying a 45.83% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $180.4 million, down 14.37% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.41 per share and revenue of $815.03 million, indicating changes of -0.58% and +1.43%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Silicon Motion should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Silicon Motion holds a Zacks Rank of #2 (Buy).
In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 21.63. This indicates a premium in contrast to its industry's Forward P/E of 19.82.
It is also worth noting that SIMO currently has a PEG ratio of 10.2. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 3.69 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Silicon Motion Technology Corporation (SIMO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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