Silicon Motion (SIMO) closed the most recent trading day at $84.54, moving -1.12% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.16% for the day. Meanwhile, the Dow experienced a drop of 0.47%, and the technology-dominated Nasdaq saw a decrease of 1.81%.
The chip company's stock has climbed by 1.14% in the past month, exceeding the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. In that report, analysts expect Silicon Motion to post earnings of $1.31 per share. This would mark year-over-year growth of 43.96%. Meanwhile, our latest consensus estimate is calling for revenue of $260.55 million, up 36.3% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.55 per share and revenue of $863.29 million, indicating changes of +3.5% and +7.43%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Silicon Motion. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Silicon Motion possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 24.08. This indicates a discount in contrast to its industry's Forward P/E of 24.84.
We can also see that SIMO currently has a PEG ratio of 1.14. 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. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 1.09.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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