In the latest market close, Silicon Motion (SIMO) reached $50.58, with a -0.31% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Shares of the chip company have depreciated by 9.57% over the course of the past month, underperforming the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.

Market participants will be closely following the financial results of Silicon Motion in its upcoming release. It is anticipated that the company will report an EPS of $0.44, marking a 31.25% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $162.58 million, indicating a 14.12% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.68 per share and a revenue of $828.21 million, signifying shifts of +7.29% and +3.07%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Silicon Motion currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 13.78. This valuation marks a premium compared to its industry's average Forward P/E of 13.57.

It is also worth noting that SIMO currently has a PEG ratio of 0.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.47 at the close of the market yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research