In the latest trading session, United Microelectronics Corporation (UMC) closed at $6.50, marking a -0.15% move from the previous day. This change was narrower than the S&P 500’s 0.92% loss on the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.05%.
Heading into today, shares of the company had lost 19.73% over the past month, lagging the Computer and Technology sector’s loss of 0.73% and the S&P 500’s loss of 1% in that time.
Wall Street will be looking for positivity from United Microelectronics Corporation as it approaches its next earnings report date. The company is expected to report EPS of $0.33, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.32 billion, up 26.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.26 per share and revenue of $9.21 billion. These totals would mark changes of +51.81% and +20.77%, respectively, from last year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 currently sporting a Zacks Rank of #3 (Hold).
Investors should also note United Microelectronics Corporation’s current valuation metrics, including its Forward P/E ratio of 5.17. Its industry sports an average Forward P/E of 13.47, so we one might conclude that United Microelectronics Corporation is trading at a discount comparatively.
The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 48% 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.
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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