Silicon Motion (SIMO) closed at $93.26 in the latest trading session, marking a -2.57% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the chip company had gained 4.89% in the past month. In that same time, the Computer and Technology sector gained 2.05%, while the S&P 500 gained 0.89%.
The investment community will be closely monitoring the performance of Silicon Motion in its forthcoming earnings report. The company is expected to report EPS of $1.31, up 43.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $260.55 million, up 36.3% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.55 per share and a revenue of $863.29 million, indicating changes of +3.5% and +7.43%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Silicon Motion. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Silicon Motion is currently a Zacks Rank #3 (Hold).
In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 26.96. This expresses a premium compared to the average Forward P/E of 26.76 of its industry.
Also, we should mention that SIMO has a PEG ratio of 1.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.18 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 15, which puts it in the top 7% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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