Silicon Motion (SIMO) Declines More Than Market: Some Information for Investors

Silicon Motion (SIMO) closed the most recent trading day at $68.45, moving -1.93% from the previous trading session. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.91%. The stock of chip company has risen by 10.43% in the past month, leading the Computer and Technology sector's loss of 0% and the S&P 500's gain of 1.44%.The upcoming earnings release of Silicon Motion will be of great interest to investors. The company is expected to report EPS of $0.52, down 45.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $180.4 million, down 14.37% from the prior-year quarter. For the full year, the Zacks Consensus Estimates project earnings of $3.41 per share and a revenue of $815.03 million, demonstrating changes of -0.58% and +1.43%, respectively, from the preceding year. Investors should also take note of any recent adjustments to analyst estimates for Silicon Motion. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Silicon Motion is currently sporting a Zacks Rank of #3 (Hold). Looking at its valuation, Silicon Motion is holding a Forward P/E ratio of 23.97. This expresses a premium compared to the average Forward P/E of 22.67 of its industry. Also, we should mention that SIMO has a PEG ratio of 1.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SIMO's industry had an average PEG ratio of 2.18 as of yesterday's close. The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Silicon Motion Technology Corporation (SIMO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks