Back to top

Image: Bigstock

STMicroelectronics (STM) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

STMicroelectronics (STM - Free Report) ended the recent trading session at $47.84, demonstrating a +0.84% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 0.55%.

The chip company's stock has climbed by 18.48% in the past month, exceeding the Computer and Technology sector's gain of 11.62% and the S&P 500's gain of 9.16%.

The upcoming earnings release of STMicroelectronics will be of great interest to investors. The company is expected to report EPS of $0.98, down 25.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.3 billion, down 2.76% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.29 per share and revenue of $17.34 billion. These totals would mark changes of +2.39% and +7.52%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for STMicroelectronics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, STMicroelectronics possesses a Zacks Rank of #3 (Hold).

Looking at valuation, STMicroelectronics is presently trading at a Forward P/E ratio of 11.07. This indicates a discount in contrast to its industry's Forward P/E of 19.66.

We can also see that STM currently has a PEG ratio of 2.21. 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. As the market closed yesterday, the Semiconductor - General industry was having an average PEG ratio of 2.77.

The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


STMicroelectronics N.V. (STM) - free report >>

Published in