The latest trading session saw Silicon Motion (SIMO) ending at $41.36, denoting a -0.48% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq decreased by 0.05%.

Prior to today's trading, shares of the chip company had lost 22.07% over the past month. This has lagged the Computer and Technology sector's loss of 6.26% and the S&P 500's loss of 3.94% in that time.

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. It is anticipated that the company will report an EPS of $0.43, marking a 32.81% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $162.58 million, down 14.12% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.56 per share and a revenue of $828.21 million, demonstrating changes of +3.79% and +3.07%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Silicon Motion. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Silicon Motion possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 11.68. For comparison, its industry has an average Forward P/E of 11.36, which means Silicon Motion is trading at a premium to the group.

Investors should also note that SIMO has a PEG ratio of 0.82 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 19% of all 250+ industries.

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.

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

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

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