Stellantis (STLA) Dips More Than Broader Markets: What You Should Know
Stellantis (STLA) closed the most recent trading day at $16.33, moving -1.63% from the previous trading session. This change lagged the S&P 500's 1.04% loss on the day. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 5.88%.
Heading into today, shares of the automaker had gained 9.43% over the past month, lagging the Auto-Tires-Trucks sector's gain of 28.35% and outpacing the S&P 500's gain of 8.97% in that time.
Investors will be hoping for strength from Stellantis as it approaches its next earnings release, which is expected to be February 22, 2023.
STLA's full-year Zacks Consensus Estimates are calling for earnings of $4.69 per share and revenue of $192.83 billion. These results would represent year-over-year changes of -6.2% and +9.07%, respectively.
It is also important to note the recent changes to analyst estimates for Stellantis. Recent revisions tend to reflect the latest 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 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, the Zacks Consensus EPS estimate has moved 2.74% higher. Stellantis currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Stellantis is currently trading at a Forward P/E ratio of 3.54. This represents a discount compared to its industry's average Forward P/E of 7.5.
Investors should also note that STLA has a PEG ratio of 1.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Foreign was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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 STLA in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Stellantis N.V. (STLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.