STM Stock Analysis: Buy, Sell, or Hold?
STM - STMicroelectronics N.V.
$61.41
-2.97 (-4.61%)
▼
5d:
+3.79%
30d:
+47.73%
90d:
+82.71%
HOLD
MODERATE Confidence
Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: Jul 23, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: STM trades at premium valuation expecting 8.6% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: STM trades at premium valuation expecting 8.6% growth. Hold existing positions but don't chase. Wait for better entry.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$93.37
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$57.97
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 21.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: STM is currently trading at $61.41, which is considered extended relative to its 30-day fair value range of $40.86 to $58.18. From a valuation perspective, the stock is trading at a premium (Forward PE: 27.5) compared to its historical average (21.5). At these levels, the market is pricing in 8.6% annual earnings growth.
Technical Outlook: Technically, STM is in a strong uptrend. Immediate support is located at $54.61, while resistance sits at $65.31. Short-term momentum is weak, with the stock down 4.6% recently.
Market Sentiment: STM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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. Immediate support is located at $54.61, while resistance sits at $65.31. Short-term momentum is weak, with the stock down 4.6% recently.
Market Sentiment: STM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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
$40.86 -
$58.18
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
48.6%
Protect Your Profits
STM is technically overbought (RSI 70). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range (+5.6% above its trading range)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-4.6%)
- BEARISH: Trading above Wall St target ($55.44)
- BULLISH: Expecting earnings turnaround to 8.6% growth with 23.0% revenue growth
Trading Range Analysis
30-Day Trading Range
$40.86 -
$58.18
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$54.61
Resistance Level
$65.31
Current Trend
Strong Uptrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
27.54
Wall Street Target
$55.44
(-9.7%)
Revenue Growth (YoY)
23.0%
Earnings Growth (YoY)
-33.3%
Profit Margin
1.2%
Valuation Premium vs History
+8.6% premium
PE vs Historical
27.5 vs 21.5
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+8.6%
(market-implied from PE analysis)
1-Year Target
$66.69
(+9%)
2-Year Target
$72.43
(+18%)
3-Year Target
$78.66
(+28%)
3-Yr Target (if PE normalizes)
(PE: 28→22)
PE COMPRESSION
$61.41
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 27.5, Growth: 106.5%)
$207.26
(+238%)
Base:
(SPY PE: 22.1, Growth: 106.5%)
$166.10
(+171%)
Bear:
(PE: 18.8, Growth: 106.5%)
$141.19
(+130%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (55x PE), but valuation improves significantly next year (28x PE) as earnings recover.
Forward PE: 54.64 | Forward EPS (Implied): $1.12
Bull Case
$74.15
(+21%)
Analyst growth 15.0%, PE expands to 57.4
Base Case
$61.41
(0%)
Market implied 0.0%, PE stable at 54.6
Bear Case
$46.98
(-24%)
Severe decline -15.0%, PE contracts to 49.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 18, 2026 7:01 AM ET
Data refreshes hourly during market hours. Next update: 8:01 AM
Data refreshes hourly during market hours. Next update: 8:01 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.
