In the latest trading session, Silicon Motion (SIMO) closed at $56.15, marking a +0.05% move from the previous day. This change lagged the S&P 500's 0.82% gain on the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 1.77%.

Coming into today, shares of the chip company had gained 9.76% in the past month. In that same time, the Computer and Technology sector gained 1.43%, while the S&P 500 gained 0.8%.

Market participants will be closely following the financial results of Silicon Motion in its upcoming release. In that report, analysts expect Silicon Motion to post earnings of $0.75 per share. This would mark a year-over-year decline of 19.35%. In the meantime, our current consensus estimate forecasts the revenue to be $196.65 million, indicating a 2.83% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.25 per share and a revenue of $809.04 million, signifying shifts of +43.17% and +26.58%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Silicon Motion presently features a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Silicon Motion has a Forward P/E ratio of 17.26 right now. This represents a premium compared to its industry's average Forward P/E of 14.87.

One should further note that SIMO currently holds a PEG ratio of 1.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Integrated Systems was holding an average PEG ratio of 2.34 at yesterday's closing price.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 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.

To follow SIMO in the coming trading sessions, be sure to utilize Zacks.com.

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