In the latest trading session, Silicon Motion (SIMO) closed at $110.69, marking a -8.62% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
The chip company's shares have seen an increase of 26.55% over the last month, surpassing the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
Investors will be eagerly watching for the performance of Silicon Motion in its upcoming earnings disclosure. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $260.55 million, up 36.3% from the year-ago period.
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 0%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Silicon Motion. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Silicon Motion presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 24.82. This represents a premium compared to its industry average Forward P/E of 24.53.
Meanwhile, SIMO's PEG ratio is currently 1.17. 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 0.95 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 22, which puts it in the top 9% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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