STM Stock Analysis: Buy, Sell, or Hold?
STM - STMicroelectronics N.V.
$50.56
0.64 (1.28%)
â˛
5d:
-6.87%
30d:
-5.48%
90d:
-23.0%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Oct 29, 2026
Smart Money Accumulation
Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →
Signal fired Aug 12, 2026 at $54.18 · last confirmed Aug 21, 2026
Strength: 8.3/10
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: STM is fairly priced but lacks strong directional signals. At -5.3% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: STM is fairly priced but lacks strong directional signals. At -5.3% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$115.43
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$71.68
29.5% 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 23.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: STM is currently trading at $50.56, which is considered slightly low relative to its 30-day fair value range of $50.14 to $62.25. From a valuation perspective, the stock is trading at a discount (Forward PE: 19.9) compared to its historical average (23.4). Remarkably, the market is currently pricing in an annual earnings decline of 5.3% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, STM is in a uptrend. The price is currently testing key support at $49.67. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: STM scores 26/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $71.52 (+41.9%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, STM is in a uptrend. The price is currently testing key support at $49.67. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: STM scores 26/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $71.52 (+41.9%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$50.14 -
$62.25
Company Quality Score
48/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
Protect Your Profits
Holding STM? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (26/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 41.9% below Wall St target ($71.52)
- WARNING: Composite score 48/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$50.14 -
$62.25
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$49.68
Resistance Level
$57.04
Current Trend
Uptrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
19.90
Wall Street Target
$71.52
(+41.9%)
Revenue Growth (YoY)
26.1%
Earnings Growth (YoY)
-33.3%
Profit Margin
3.6%
Valuation Discount vs History
-5.3% cheaper
PE vs Historical
19.9 vs 23.4
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.3%
(market-implied from PE analysis)
1-Year Target
$47.74
(-5%)
2-Year Target
$45.21
(-10%)
3-Year Target
$42.81
(-15%)
3-Yr Target (if PE normalizes)
(PE: 20â23)
$50.34
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 87.2%)
$171.59
(+240%)
Base:
(SPY PE: 19.9, Growth: 87.2%)
$170.13
(+238%)
Bear:
(PE: 16.9, Growth: 87.2%)
$144.61
(+187%)
đ
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (43x PE), but valuation improves significantly next year (20x PE) as earnings recover.
Forward PE: 42.55 | Forward EPS (Implied): $1.19
Bull Case
$61.05
(+21%)
Analyst growth 15.0%, PE expands to 44.7
Base Case
$50.56
(0%)
Market implied 0.0%, PE stable at 42.6
Bear Case
$38.68
(-24%)
Severe decline -15.0%, PE contracts to 38.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 19.9 to 23.4
Stabilization Target:
$59.28
(+17.6%)
PE Expansion Potential:
+17.6%
Share & Embed Analysis
Last updated: August 23, 2026 6:45 AM ET
Data refreshes hourly during market hours. Next update: 7:45 AM
Data refreshes hourly during market hours. Next update: 7:45 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.
