In the latest trading session, Stellantis (STLA) closed at $9.86, marking a +1.65% move from the previous day. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%.
The automaker's shares have seen a decrease of 10.93% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 5.92% and the S&P 500's gain of 0.78%.
The investment community will be closely monitoring the performance of Stellantis in its forthcoming earnings report.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.56 per share and a revenue of $181.72 billion, representing changes of -41.79% and +7.04%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Stellantis. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 8.97% fall in the Zacks Consensus EPS estimate. Stellantis is currently sporting a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Stellantis is currently being traded at a Forward P/E ratio of 6.21. This indicates a discount in contrast to its industry's Forward P/E of 12.85.
One should further note that STLA currently holds a PEG ratio of 0.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Automotive - Foreign industry stood at 1.12 at the close of the market yesterday.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 32% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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