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United Microelectronics Corporation (UMC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, United Microelectronics Corporation (UMC) closed at $12.15, marking a -0.65% move from the previous day. This move lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.61%.

Heading into today, shares of the company had gained 14.51% over the past month, outpacing the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 2.09% in that time.

Investors will be hoping for strength from United Microelectronics Corporation as it approaches its next earnings release. In that report, analysts expect United Microelectronics Corporation to post earnings of $0.22 per share. This would mark year-over-year growth of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 30.28% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.81 per share and revenue of $7.77 billion, which would represent changes of +92.86% and +28.93%, respectively, from the prior year.

Any recent changes to analyst estimates for United Microelectronics Corporation should also be noted by investors. 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 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. United Microelectronics Corporation currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, United Microelectronics Corporation is holding a Forward P/E ratio of 15.1. Its industry sports an average Forward P/E of 23.7, so we one might conclude that United Microelectronics Corporation is trading at a discount comparatively.

It is also worth noting that UMC currently has a PEG ratio of 0.54. 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 1.52 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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