Stellantis (STLA) Suffers a Larger Drop Than the General Market: Key Insights

In the latest trading session, Stellantis (STLA) closed at $24.60, marking a -1.05% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.46%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 0.64%.

Coming into today, shares of the automaker had lost 14.25% in the past month. In that same time, the Auto-Tires-Trucks sector lost 6.9%, while the S&P 500 lost 3.04%.

Analysts and investors alike will be keeping a close eye on the performance of Stellantis in its upcoming earnings disclosure. The company's earnings report is set to go public on April 30, 2024.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.08 per share and a revenue of $204.54 billion, signifying shifts of -5.44% and +8.08%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Stellantis. These recent revisions tend to reflect the evolving nature of short-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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.7% lower. Stellantis presently features a Zacks Rank of #4 (Sell).

With respect to valuation, Stellantis is currently being traded at a Forward P/E ratio of 4.09. This represents a discount compared to its industry's average Forward P/E of 6.06.

Meanwhile, STLA's PEG ratio is currently 0.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. STLA's industry had an average PEG ratio of 0.38 as of yesterday's close.

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 189, finds itself in the bottom 25% echelons 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 to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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