Silicon Motion (SIMO) ended the recent trading session at $72.34, demonstrating a -1.98% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
Heading into today, shares of the chip company had gained 9.67% over the past month, outpacing the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
Investors will be eagerly watching for the performance of Silicon Motion in its upcoming earnings disclosure. The company is expected to report EPS of $0.52, down 45.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $180.4 million, down 14.37% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $815.03 million. These totals would mark changes of -0.58% and +1.43%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Silicon Motion presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Silicon Motion is currently exchanging hands at a Forward P/E ratio of 21.62. Its industry sports an average Forward P/E of 19.21, so one might conclude that Silicon Motion is trading at a premium comparatively.
One should further note that SIMO currently holds a PEG ratio of 10.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 4.33.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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