STM Stock Analysis: Buy, Sell, or Hold?
STM - STMicroelectronics N.V.
$79.71
0.20 (0.25%)
▲
5d:
+17.65%
30d:
+44.59%
90d:
+139.15%
HOLD
MODERATE Confidence
Analysis Updated: Jun 3, 2026 12:00 AM ET
Earnings: Jul 23, 2026
Smart Money Distribution
None View Scanner →
Strength: 5.7/10
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1 traders called STM this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD - EXTENDED: STM is 14.1% above its trading range ($69.89). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.
📊 HOLD - EXTENDED: STM is 14.1% above its trading range ($69.89). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$96.41
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$59.86
Trading above historical range
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 22.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: STM is currently trading at $79.71, which is considered extended relative to its 30-day fair value range of $54.70 to $69.89. From a valuation perspective, the stock is trading at a premium (Forward PE: 35.6) compared to its historical average (22.2). At these levels, the market is pricing in 17.1% annual earnings growth.
Technical Outlook: Technically, STM is in a strong uptrend. The price is approaching resistance at $80.81. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: STM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $57.44. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, STM is in a strong uptrend. The price is approaching resistance at $80.81. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: STM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $57.44. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$54.70 -
$69.89
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
46.2%
Protect Your Profits
STM is technically overbought (RSI 81). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price significantly overextended (+14.1% above its trading range)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Trading 27.8% above Wall St target ($57.44)
- BULLISH: Expecting earnings turnaround to 17.1% growth with 23.0% revenue growth
Trading Range Analysis
30-Day Trading Range
$54.70 -
$69.89
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$63.19
Resistance Level
$80.81
Current Trend
Strong Uptrend
Technical data as of
Jun 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
35.65
Wall Street Target
$57.44
(-27.8%)
Revenue Growth (YoY)
23.0%
Earnings Growth (YoY)
-33.3%
Profit Margin
1.2%
Valuation Premium vs History
+17.1% premium
PE vs Historical
35.7 vs 22.2
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+17.1%
(market-implied from PE analysis)
1-Year Target
$93.11
(+17%)
2-Year Target
$109.03
(+37%)
3-Year Target
$127.67
(+61%)
3-Yr Target (if PE normalizes)
(PE: 36→22)
PE COMPRESSION
$79.49
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 35.7, Growth: 106.5%)
$268.35
(+238%)
Base:
(SPY PE: 21.9, Growth: 106.5%)
$164.90
(+107%)
Bear:
(PE: 18.6, Growth: 106.5%)
$140.17
(+76%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (63x PE), but valuation improves significantly next year (36x PE) as earnings recover.
Forward PE: 62.89 | Forward EPS (Implied): $1.10
Bull Case
$83.86
(+21%)
Analyst growth 15.0%, PE expands to 66.0
Base Case
$69.45
(0%)
Market implied 0.0%, PE stable at 62.9
Bear Case
$53.13
(-24%)
Severe decline -15.0%, PE contracts to 56.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 03, 2026 4:40 PM ET
Data refreshes hourly during market hours. Next update: 5:40 PM
Data refreshes hourly during market hours. Next update: 5:40 PM
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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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