Here's Why Silicon Motion (SIMO) Gained But Lagged the Market Today

The latest trading session saw Silicon Motion (SIMO) ending at $56.50, denoting a +1.25% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.77%. Meanwhile, the Dow gained 1.42%, and the Nasdaq, a tech-heavy index, added 2.28%.Shares of the chip company witnessed a loss of 5.1% over the previous month, beating the performance of the Computer and Technology sector with its loss of 9.47% and the S&P 500's loss of 5.73%.The upcoming earnings release of Silicon Motion will be of great interest to investors. On that day, Silicon Motion is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 31.25%. In the meantime, our current consensus estimate forecasts the revenue to be $162.58 million, indicating a 14.12% decline compared to the corresponding quarter of the prior year.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 pay attention to any latest changes in analyst estimates for Silicon Motion. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Silicon Motion is holding a Zacks Rank of #3 (Hold) right now.Looking at valuation, Silicon Motion is presently trading at a Forward P/E ratio of 15.16. This signifies a premium in comparison to the average Forward P/E of 14.71 for its industry.It is also worth noting that SIMO currently has a PEG ratio of 1.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 1.54.The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during 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 +24.3% 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