Stellantis (STLA) closed at $10.91 in the latest trading session, marking a -1.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The automaker's shares have seen a decrease of 6.36% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 1.58% and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Stellantis in its upcoming release.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.72 per share and revenue of $179.49 billion, which would represent changes of -35.82% and +5.72%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Stellantis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Stellantis boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Stellantis has a Forward P/E ratio of 6.44 right now. For comparison, its industry has an average Forward P/E of 11.99, which means Stellantis is trading at a discount to the group.
It's also important to note that STLA currently trades at a PEG ratio of 0.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Automotive - Foreign industry was having an average PEG ratio of 1.12.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 9% of all 250+ industries.
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.
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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Stellantis N.V. (STLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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