Yahoo Finance Silicon Motion (SIMO) Beats Stock Market Upswing: What Investors Need to Know
The most recent trading session ended with Silicon Motion (SIMO) standing at $80.31, reflecting a +0.27% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.09% for the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.3%.
The chip company's shares have seen an increase of 4.73% over the last month, not keeping up with the Computer and Technology sector's gain of 6.18% and outstripping the S&P 500's gain of 3.38%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company's earnings per share (EPS) are projected to be $0.90, reflecting a 136.84% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $204.23 million, showing a 45.51% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.51 per share and a revenue of $820.29 million, indicating changes of +54.63% and +28.34%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Silicon Motion. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Silicon Motion presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Silicon Motion is presently being traded at a Forward P/E ratio of 22.83. This valuation marks a discount compared to its industry's average Forward P/E of 39.27.
Meanwhile, SIMO's PEG ratio is currently 0.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 2.88.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 38% 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.
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
