Silicon Motion (SIMO) closed the most recent trading day at $54.61, moving +1.94% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the chip company had lost 1.98% over the past month, lagging the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87% 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 February 5, 2025. The company's upcoming EPS is projected at $0.84, signifying a 9.68% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $195.55 million, reflecting a 3.37% fall from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% lower. Silicon Motion is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Silicon Motion is currently exchanging hands at a Forward P/E ratio of 13.53. This expresses no noticeable deviation compared to the average Forward P/E of 13.53 of its industry.
Also, we should mention that SIMO has a PEG ratio of 0.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.73 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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