Yahoo Finance Silicon Motion (SIMO) Ascends While Market Falls: Some Facts to Note
Silicon Motion (SIMO) ended the recent trading session at $82.71, demonstrating a +0.99% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow experienced a drop of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.12%.
Heading into today, shares of the chip company had gained 5.94% over the past month, outpacing the Computer and Technology sector's loss of 2.27% and the S&P 500's gain of 4.15% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Silicon Motion in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.88, marking a 131.58% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $204.23 million, up 45.51% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.47 per share and a revenue of $820.29 million, indicating changes of +52.86% and +28.34%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Silicon Motion. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Silicon Motion presently features a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Silicon Motion has a Forward P/E ratio of 23.62 right now. For comparison, its industry has an average Forward P/E of 41.12, which means Silicon Motion is trading at a discount to the group.
One should further note that SIMO currently holds a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 3.03 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.
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.
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
