United Microelectronics Corporation (UMC) closed the most recent trading day at $11.07, moving +0.54% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.03%. Meanwhile, the Dow lost 1.48%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Coming into today, shares of the company had lost 4.09% in the past month. In that same time, the Computer and Technology sector lost 4.42%, while the S&P 500 lost 0.62%.
Investors will be hoping for strength from United Microelectronics Corporation as it approaches its next earnings release. The company is expected to report EPS of $0.22, up 37.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 30.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $7.77 billion. These totals would mark changes of +92.86% and +28.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for United Microelectronics Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. United Microelectronics Corporation is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note United Microelectronics Corporation’s current valuation metrics, including its Forward P/E ratio of 13.59. For comparison, its industry has an average Forward P/E of 23.46, which means United Microelectronics Corporation is trading at a discount to the group.
It is also worth noting that UMC currently has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Electronics – Semiconductors industry currently had an average PEG ratio of 1.76 as of yesterday’s close.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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