Silicon Motion (SIMO) Gains As Market Dips: What You Should Know

Silicon Motion (SIMO) closed the most recent trading day at $90.23, moving +1.29% from the previous trading session. This change outpaced the S&P 500's 0.03% loss on the day. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq decreased by 0.09%. The stock of chip company has risen by 1.71% in the past month, leading the Computer and Technology sector's gain of 1.66% and undershooting the S&P 500's gain of 2.57%.Market participants will be closely following the financial results of Silicon Motion in its upcoming release. On that day, Silicon Motion is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 43.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $260.55 million, up 36.3% from the year-ago period. SIMO's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $863.29 million. These results would represent year-over-year changes of +3.5% and +7.43%, respectively. Investors should also note any recent changes to analyst estimates 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 business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Silicon Motion is carrying a Zacks Rank of #3 (Hold). Investors should also note Silicon Motion's current valuation metrics, including its Forward P/E ratio of 25.09. This expresses a discount compared to the average Forward P/E of 25.22 of its industry. It's also important to note that SIMO currently trades at a PEG ratio of 1.19. 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. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 1.11. The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 20, finds itself in the top 9% echelons of all 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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