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The most recent trading session ended with Silicon Motion (SIMO) standing at $51.45, reflecting a -1.27% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.91%. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.
Prior to today's trading, shares of the chip company had lost 4.03% over the past month. This has was narrower than the Computer and Technology sector's loss of 10.57% and the S&P 500's loss of 7.38% in that time.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. The company is forecasted to report an EPS of $0.44, showcasing a 31.25% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $162.58 million, down 14.12% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $828.21 million, which would represent changes of +7.29% and +3.07%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Silicon Motion. Such recent modifications usually signify the changing landscape of 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Silicon Motion possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 14.16. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 14.16.
One should further note that SIMO currently holds a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Integrated Systems was holding an average PEG ratio of 1.51 at yesterday's closing price.