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STMSTMicroelectronics N.V.Buy Wait6.0·$48.52
Buy WaitModerate Confidence
Investment thesis

STMicroelectronics has missed earnings estimates in 3 of the last 4 quarters with an average negative surprise of 34% and its quality score of 3.5 sits below the minimum threshold, while free cash flow is deeply negative at -245% of net income; the indicated price upside is also negative, making the fundamental and technical cases both weak.

Thesis pillars

  • 23pct Revenue Growth Thesis→Stable
  • Earnings Miss Streak 34pct Avg↑Improving
  • Below Quality Floor Negative Fcf↓Deteriorating
  • +1 more pillar — see the Why tab for full reasoning

Pillars as of Jul 3, 2026

Full reasoning →

Open full analysis

STMicroelectronics N.V. (STM) Stock Analysis

Buy WaitVALUE-TRAP 2/5GrowthModerate Confidence

Technology · Semiconductors

Earnings today — results expected after close (2026-10-29). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $45.96. Weak momentum — blocks BUY_NOW at $48.52. Engine's entry $45.96 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1); Sector modifier (Technology): -0.8.

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Analog products, MEMS and Sensors Group (AM&S); Power... Read more

$48.52+33.8% A.UpsideScore 6.0/10#24 of 53 Semiconductors
QualityF-score9 / 9FCF yield0.24%
IncomeYield0.74%(5y avg 0.69%)Payout900.00%at-risk
Entry $45.96(Default 5pct Sticky)Stop $42.74Target $64.92(analyst − 13%)A.R:R 3.1:1
Analyst consensus$74.63+53.8%12 analysts
$64.92our TP
$48.52price
$74.63mean
$98

Wait for pullback to $45.96. Weak momentum — blocks BUY_NOW at $48.52. Engine's entry $45.96 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Earnings today. Wait until post-earnings. Score 6.0/10, moderate confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news boost earnings 0.60, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and earnings proximity 0d<=7d. Suitability: speculative.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Oct 29, 2026Earnings today — results expected after close· next earnings call

Thesis

Rewards
Attractive valuation
Strong growth profile
Positive insider activity
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1)
Sector modifier (Technology): -0.8
Negative momentum

Key Metrics

P/E (TTM)1213.0
P/E (Fwd)19.2
Mkt Cap$43.4B
EV/EBITDA15.0
Profit Mgn3.6%
ROE2.7%
Rev Growth26.1%
Beta1.48
Dividend0.74%
Rating analysts26

Quality Signals

Piotroski F9/9MoatNarrow

Options Flow

P/C2.35bearish
IV90%elevated
Max Pain$30-38.2% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.

No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Obv
1.0
Ma Position
2.2
Macd
2.8
Rsi
3.5
Volume
4.4
Volume distribution (falling OBV)Below 200-MA but MA still rising (+7.9%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 2.8<4.5EARNINGS PROXIMITY 0d<=7dA.R:R 3.1 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS BOOST EARNINGS 0.60SEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Speculative
RSI
38 · Neutral
↓ 20D MA↓ 50D MA↓ 200D MAGOLDEN CROSSSupport $43.21Resistance $59.29

Price Targets

$43
$46
$65
A.Upside+33.8%
A.R:R3.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Earnings today - binary event risk
! momentum at 2.8 (below the engine's 4.5 threshold)
! EARNINGS_PROXIMITY:0d<=7d

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-10-29 (Earnings today — results expected after close)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is STM stock a buy right now?

Wait for pullback to $45.96. Weak momentum — blocks BUY_NOW at $48.52. Engine's entry $45.96 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Earnings today. Wait until post-earnings. Target $64.92 (+33.8%), stop $42.74 (−13.5%), A.R:R 3.1:1. Score 6.0/10, moderate confidence.

What is the STM stock price target?

Take-profit target: $64.92 (+33.8% upside). Target $64.92 (+33.8%), stop $42.74 (−13.5%), A.R:R 3.1:1. Stop-loss: $42.74.

What are the risks of investing in STM?

V7 low-quality RISK_OFF penalty: -0.5 (Q=4.1); Sector modifier (Technology): -0.8; Negative momentum.

Is STM overvalued or undervalued?

STMicroelectronics N.V. trades at a P/E of 1213.0 (forward 19.2). TrendMatrix value score: 7.3/10. Verdict: Buy (Wait for Entry).

What do analysts say about STM?

26 analysts cover STM with a consensus score of 4.0/5. Average price target: $75.

What does STMicroelectronics N.V. do?STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor...

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Embedded Processing (“EMP”); and RF Products (D&RF) segments. It offers industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); power management solutions; custom analog ICs, wireless charging solutions; galvanic isolated gate and LED drivers; converters, transistors, intelligent power switches, clocks and timers, comparators, and current-sense amplifiers; micro-electro-mechanical systems (MEMS) sensors, including accelerometers, gyroscopes, magnetic sensors, pressure, temperature, presence detection, biosensors, machine learning, and edge AI processing smart sensors, as well as thermal and piezoelectric actuators; and optical sensing solutions. The company also provides silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules and bipolar transistors; microcontrollers, and automotive microcontrollers and secured; radio frequency (RF) communications and ASICs; car infotainment products; ultra-wide band and radar systems; and Connected Security Products; and automotive driver assistance systems. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Plan-les-Ouates, Switzerland.

Related stocks: SIMO (Silicon Motion Technology Corpo) · CRUS (Cirrus Logic, Inc.) · NXPI (NXP Semiconductors N.V.) · ALGM (Allegro MicroSystems, Inc.) · CRDO (Credo Technology Group Holding )
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