The latest trading session saw Silicon Motion (SIMO) ending at $50.53, denoting a +0.2% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.45%.
The chip company's shares have seen a decrease of 16.16% over the last month, not keeping up with the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of Silicon Motion in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2025. In that report, analysts expect Silicon Motion to post earnings of $0.73 per share. This would mark a year-over-year decline of 21.51%. Simultaneously, our latest consensus estimate expects the revenue to be $195.55 million, showing a 3.37% drop compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.25% lower. As of now, Silicon Motion holds a Zacks Rank of #4 (Sell).
In terms of valuation, Silicon Motion is presently being traded at a Forward P/E ratio of 12.73. This indicates a discount in contrast to its industry's Forward P/E of 17.36.
Investors should also note that SIMO has a PEG ratio of 0.9 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 1.84.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 250 industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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