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Silicon Motion (SIMO) Surpasses Market Returns: Some Facts Worth Knowing

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Silicon Motion (SIMO - Free Report) ended the recent trading session at $74.67, demonstrating a +1.84% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.

Shares of the chip company witnessed a gain of 4.8% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.37%, and the S&P 500's gain of 5.35%.

Analysts and investors alike will be keeping a close eye on the performance of Silicon Motion in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2025. The company is forecasted to report an EPS of $0.52, showcasing a 45.83% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $180.4 million, indicating a 14.37% decrease compared to the same quarter of the previous year.

SIMO's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $815.03 million. These results would represent year-over-year changes of -0.58% and +1.43%, 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 has moved 0.21% higher within the past month. Silicon Motion is currently sporting a Zacks Rank of #2 (Buy).

In the context of valuation, Silicon Motion is at present trading with a Forward P/E ratio of 21.48. This denotes a premium relative to the industry average Forward P/E of 19.71.

We can also see that SIMO currently has a PEG ratio of 10.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Integrated Systems industry stood at 4.27 at the close of the market yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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