Silicon Motion (SIMO) ended the recent trading session at $118.83, demonstrating a +2.29% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.94%.
The chip company's stock has climbed by 25.32% in the past month, exceeding the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 0.89%.
The upcoming earnings release of Silicon Motion will be of great interest to investors. The company's earnings report is expected on February 3, 2026. The company's upcoming EPS is projected at $1.29, signifying a 41.76% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $261.2 million, indicating a 36.64% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.58 per share and a revenue of $864.54 million, signifying shifts of +4.37% and 0%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Silicon Motion. Recent revisions tend to reflect the latest 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. As of now, Silicon Motion holds a Zacks Rank of #4 (Sell).
In terms of valuation, Silicon Motion is currently trading at a Forward P/E ratio of 23.8. For comparison, its industry has an average Forward P/E of 24.55, which means Silicon Motion is trading at a discount to the group.
One should further note that SIMO currently holds a PEG ratio of 1.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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