In the latest close session, Silicon Motion (SIMO) was down 2.16% at $115.27. This change lagged the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.91%.
The chip company's shares have seen an increase of 32.25% over the last month, surpassing the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company plans to announce its earnings on February 3, 2026. The company is predicted to post an EPS of $1.29, indicating a 41.76% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $260.55 million, indicating a 36.3% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.58 per share and a revenue of $863.29 million, signifying shifts of +4.37% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Silicon Motion is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Silicon Motion is currently exchanging hands at a Forward P/E ratio of 24.14. This denotes a discount relative to the industry average Forward P/E of 24.28.
We can also see that SIMO currently has a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SIMO's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 33% echelons 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.
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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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