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In the latest trading session, Silicon Motion (SIMO) closed at $56.15, marking a +0.05% move from the previous day. This change lagged the S&P 500's 0.82% gain on the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 1.77%.
Coming into today, shares of the chip company had gained 9.76% in the past month. In that same time, the Computer and Technology sector gained 1.43%, while the S&P 500 gained 0.8%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. In that report, analysts expect Silicon Motion to post earnings of $0.75 per share. This would mark a year-over-year decline of 19.35%. In the meantime, our current consensus estimate forecasts the revenue to be $196.65 million, indicating a 2.83% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.25 per share and a revenue of $809.04 million, signifying shifts of +43.17% and +26.58%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Silicon Motion presently features a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Silicon Motion has a Forward P/E ratio of 17.26 right now. This represents a premium compared to its industry's average Forward P/E of 14.87.
One should further note that SIMO currently holds a PEG ratio of 1.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Integrated Systems was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.