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In the latest market close, Silicon Motion (SIMO) reached $50.58, with a -0.31% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Shares of the chip company have depreciated by 9.57% over the course of the past month, underperforming the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.
Market participants will be closely following the financial results of Silicon Motion in its upcoming release. It is anticipated that the company will report an EPS of $0.44, marking a 31.25% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $162.58 million, indicating a 14.12% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.68 per share and a revenue of $828.21 million, signifying shifts of +7.29% and +3.07%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Silicon Motion. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 13.78. This valuation marks a premium compared to its industry's average Forward P/E of 13.57.
It is also worth noting that SIMO currently has a PEG ratio of 0.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.47 at the close of the market yesterday.