In the latest market close, Silicon Motion (SIMO) reached $56.49, with a +0.74% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.

Shares of the chip company have appreciated by 0.47% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.09% and outperforming the S&P 500's gain of 0.22%.

The investment community will be closely monitoring the performance of Silicon Motion in its forthcoming earnings report. The company is expected to report EPS of $0.74, down 20.43% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $196.65 million, indicating a 2.83% downward movement from the same quarter last year.

SIMO's full-year Zacks Consensus Estimates are calling for earnings of $3.26 per share and revenue of $809.04 million. These results would represent year-over-year changes of +43.61% and +26.58%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Silicon Motion. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Silicon Motion is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 17.21. This valuation marks a premium compared to its industry's average Forward P/E of 15.15.

It is also worth noting that SIMO currently has a PEG ratio of 1.21. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 16% of all industries, numbering over 250.

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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