STM Stock Analysis: Buy, Sell, or Hold?
STM - STMicroelectronics N.V.
$52.24
0.96 (1.87%)
▲
5d:
+5.79%
30d:
-1.95%
90d:
-26.13%
BUY
HIGH Confidence
Analysis Updated: Sep 4, 2026 12:00 AM ET
Earnings: Oct 22, 2026
Smart Money Distribution
Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →
Signal fired Sep 3, 2026 at $51.12 · last confirmed Sep 4, 2026
Strength: 8.0/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: STM trading at deep discount. Market pricing in -3.9% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: STM trading at deep discount. Market pricing in -3.9% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$114.50
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$71.09
26.5% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 23.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: STM is currently trading at $52.24, which is considered fair relative to its 30-day fair value range of $49.87 to $54.11. From a valuation perspective, the stock is trading at a discount (Forward PE: 20.6) compared to its historical average (23.2). Remarkably, the market is currently pricing in an annual earnings decline of 3.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, STM is in a downtrend. The price is approaching resistance at $52.63. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: STM scores 78/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $75.04 (+43.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, STM is in a downtrend. The price is approaching resistance at $52.63. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: STM scores 78/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $75.04 (+43.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$49.87 -
$54.11
Company Quality Score
64/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
83.3%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (78/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 43.6% below Wall St target ($75.04)
- BULLISH: Bottoming setup score 78/100 — corrected, stabilizing, and turning up
Trading Range Analysis
30-Day Trading Range
$49.87 -
$54.11
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$48.48
Resistance Level
$52.63
Current Trend
Downtrend
Technical data as of
Sep 4, 2026
Fundamental Context
Forward P/E (Next Year Est.)
20.61
Wall Street Target
$75.04
(+43.6%)
Revenue Growth (YoY)
26.1%
Earnings Growth (YoY)
-33.3%
Profit Margin
3.6%
Valuation Discount vs History
-3.9% cheaper
PE vs Historical
20.6 vs 23.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.9%
(market-implied from PE analysis)
1-Year Target
$50.20
(-4%)
2-Year Target
$48.24
(-8%)
3-Year Target
$46.36
(-11%)
3-Yr Target (if PE normalizes)
(PE: 21→23)
$52.18
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.6, Growth: 89.2%)
$176.31
(+238%)
Base:
(SPY PE: 20.2, Growth: 89.2%)
$173.03
(+231%)
Bear:
(PE: 17.2, Growth: 89.2%)
$147.08
(+182%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 20.6 to 23.2
Stabilization Target:
$58.80
(+12.5%)
PE Expansion Potential:
+12.5%
Share & Embed Analysis
Last updated: September 05, 2026 10:11 AM ET
Data refreshes hourly during market hours. Next update: 11:11 AM
Data refreshes hourly during market hours. Next update: 11:11 AM
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Technical Signals Check
Is STM showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced STM Option Strategies
Professional options setups generated by AI based on today's STM price and gamma walls.
