In the latest close session, Stellantis (STLA) was down 1.47% at $10.02. This move lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.
The stock of automaker has fallen by 12.85% in the past month, lagging the Auto-Tires-Trucks sector's loss of 1.39% and the S&P 500's gain of 1.57%.
The upcoming earnings release of Stellantis will be of great interest to investors.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.64 per share and a revenue of $180.05 billion, signifying shifts of -38.81% and +6.05%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Stellantis. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.2% lower. Stellantis currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Stellantis is currently trading at a Forward P/E ratio of 6.19. This valuation marks a discount compared to its industry average Forward P/E of 12.67.
Investors should also note that STLA has a PEG ratio of 0.45 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STLA's industry had an average PEG ratio of 1.14 as of yesterday's close.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 223, positioning 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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