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Is STMicroelectronics N.V. (NYSE: STM) A Good Investment For New Investors Now?

STMicroelectronics N.V. (NYSE:STM) shares, rose in value on Thursday, May 25, with the stock price down by -0.41% to the previous day’s close as strong demand from buyers drove the stock to $41.99.

Actively observing the price movement in the recent trading, the stock is buoying the session at $42.16, falling within a range of $41.825 and $42.955. The value of beta (5-year monthly) is 1.40 whereas the PE ratio is 9.36 over 12-month period. Referring to stock’s 52-week performance, its high was $53.53, and the low was $28.35. On the whole, STM has fluctuated by -9.27% over the past month.

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With the market capitalization of STMicroelectronics N.V. currently standing at about $38.05 billion, investors are eagerly awaiting this quarter’s results, scheduled for Nov 28, 2016 – Nov 29, 2016. The company’s Forward Dividend Ratio is 0.24, with its dividend yield at 0.57%. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $1.08, which is expected to increase to $1.12 for fiscal year $4.24 and then to about $4.13 by fiscal year 2024. Data indicates that the EPS growth is expected to be 1.20% in 2024, while the next year’s EPS growth is forecast to be -2.60%.

Analysts have estimated the company’s revenue for the quarter at $4.27 billion, with a low estimate of $4.21 billion and a high estimate of $4.29 billion. According to the average forecast, sales growth in current quarter could jump up 11.30%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2024, the company’s y-o-y revenues would reach $17.3 billion, representing an increase of 7.30% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were 1 upward and no downward review(s) in last seven days. We see that STM’s technical picture suggests that short-term indicators denote the stock is a 50% Sell on average. However, medium term indicators have put the stock in the category of 50% Buy while long term indicators on average have been pointing out that it is a Hold.

The stock’s technical analysis shows that the PEG ratio is about 1.87, with the price of STM currently trading nearly -2.38% and -10.67% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 38.49, while the 7-day volatility ratio is showing 1.87% which for the 30-day chart, stands at 1.78%. Furthermore, STMicroelectronics N.V. (STM)’s beta value is 1.57, and its average true range (ATR) is 1.15.

A comparison of STMicroelectronics N.V. (STM) with its peers suggests the former has fared considerably weaker in the market. STM showed an intraday change of -0.41% in today’s session so far, and over the past year, it grew by 9.77%%. In comparison, NVIDIA Corporation (NVDA) has moved higher at 24.91% today and is up 136.13% over the past 12 months. On the other hand, the price of Amtech Systems Inc. (ASYS) has fallen -1.53% today. The stock, however, is off 18.12% from where it was a year ago. Additionally, there is a loss of -1.21% for Analog Devices Inc. (ADI) in recent trading while the stock has seen an overall depriciation of 5.72%% over the past year. The PE ratio stands at 9.36 for STMicroelectronics N.V., compared to 175.40 for NVIDIA Corporation, and 9.78 for Amtech Systems Inc. Other than that, the overall performance of the S&P 500 during the today’s session so far shows that it gained 0.68%. Meanwhile, the Dow Jones Industrial Slipped by -0.30%.

Data on historical trading for STMicroelectronics N.V. (NYSE:STM) indicates that the trading volumes over the past 10 days have averaged 3.16 million and over the past 3 months, they’ve averaged 3.59 million. According to company’s latest data on outstanding shares, there are 945.30 million shares outstanding.

Nearly 28.40% of STMicroelectronics N.V.’s shares belong to company insiders and institutional investors own 6.80% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 8.52 million shares as on Apr 27, 2023, resulting in a short ratio of 2.25. According to the data, the short interest in STMicroelectronics N.V. (STM) stood at 0.95% of shares outstanding as of Apr 27, 2023; the number of short shares registered in Mar 30, 2023 reached 6.35 million. The stock has risen by 18.04% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the STM stock heading into the next quarter.

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