Here's Why Siemens AG (SIEGY) Gained But Lagged the Market Today
Siemens AG (SIEGY) closed the latest trading day at $88.28, indicating a +0.96% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
The company's shares have seen a decrease of 5.97% over the last month, not keeping up with the Industrial Products sector's loss of 0.81% and the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of Siemens AG in its upcoming release. The company is predicted to post an EPS of $1.24, indicating a 29.17% growth compared to the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.51 per share and revenue of $90.19 billion. These totals would mark changes of +4.16% and +7.75%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Siemens AG. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.25% higher within the past month. Siemens AG is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Siemens AG currently has a Forward P/E ratio of 15.86. Its industry sports an average Forward P/E of 14.52, so one might conclude that Siemens AG is trading at a premium comparatively.
One should further note that SIEGY currently holds a PEG ratio of 2.11. 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 Industrial Services was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Industrial Services industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Siemens AG (SIEGY) : Free Stock Analysis Report
