In the latest trading session, Silicon Motion (SIMO) closed at $52.63, marking a +1.29% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.88%. On the other hand, the Dow registered a gain of 1.24%, and the technology-centric Nasdaq increased by 0.65%.

Shares of the chip company have depreciated by 7.33% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.

The upcoming earnings release of Silicon Motion will be of great interest to investors. The company's earnings report is expected on February 5, 2025. The company is forecasted to report an EPS of $0.84, showcasing a 9.68% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $195.55 million, down 3.37% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.25% decrease. Currently, Silicon Motion is carrying a Zacks Rank of #4 (Sell).

From a valuation perspective, Silicon Motion is currently exchanging hands at a Forward P/E ratio of 13.12. Its industry sports an average Forward P/E of 18.3, so one might conclude that Silicon Motion is trading at a discount comparatively.

One should further note that SIMO currently holds a PEG ratio of 0.92. 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. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.89.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 40% of over 250 industries.

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.

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 Report

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