Silicon Motion (SIMO) closed the latest trading day at $51.06, indicating a +0.41% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.92%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.03%.
Heading into today, shares of the chip company had lost 6.87% over the past month, lagging the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.81% in that time.
Investors will be eagerly watching for the performance of Silicon Motion in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2025. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 9.68% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $195.55 million, indicating a 3.37% downward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 past month, there's been a 1.25% fall in the Zacks Consensus EPS estimate. As of now, Silicon Motion holds a Zacks Rank of #4 (Sell).
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 12.84. This indicates a discount in contrast to its industry's Forward P/E of 17.42.
We can additionally observe that SIMO currently boasts a PEG ratio of 0.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 144, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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