Silicon Motion (SIMO) ended the recent trading session at $39.40, demonstrating a +1.16% swing from the preceding day's closing price. This change lagged the S&P 500's 2.51% gain on the day. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 2.71%.
The the stock of chip company has fallen by 31.06% in the past month, lagging the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86%.
The investment community will be paying close attention to the earnings performance of Silicon Motion in its upcoming release. The company is slated to reveal its earnings on April 29, 2025. The company is expected to report EPS of $0.43, down 32.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $162.58 million, down 14.12% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $828.21 million. These totals would mark changes of +3.79% and +3.07%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Silicon Motion. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Silicon Motion is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 10.95. This indicates a premium in contrast to its industry's Forward P/E of 10.72.
Investors should also note that SIMO has a PEG ratio of 0.77 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SIMO's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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