Stellantis (STLA – Free Report) closed at $12.53 in the latest trading session, marking a -1.88% move from the prior day. This move lagged the S&P 500’s daily loss of 1.54%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 1.63%.
Prior to today’s trading, shares of the automaker had lost 6.86% over the past month. This has lagged the Auto-Tires-Trucks sector’s loss of 4.25% and the S&P 500’s loss of 2.2% in that time.
The investment community will be paying close attention to the earnings performance of Stellantis in its upcoming release.
For the full year, the Zacks Consensus Estimates project earnings of $2.83 per share and a revenue of $177.42 billion, demonstrating changes of -55.99% and -13.51%, respectively, from the preceding year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Stellantis. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% downward. Stellantis currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Stellantis’s current valuation metrics, including its Forward P/E ratio of 4.51. This valuation marks a discount compared to its industry’s average Forward P/E of 7.14.
Meanwhile, STLA’s PEG ratio is currently 0.36. 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. The Automotive – Foreign industry currently had an average PEG ratio of 0.73 as of yesterday’s close.
The Automotive – Foreign industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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