Analysts expect this company to grow by 39.8% this year.
STMicroelectronics NV (STM)
From Schaeffer’s Investment Research
Lam Research (LRCX) last week sparked a sell-off in chip stocks when it reported a rare shipment miss. Then Taiwan Semiconductor Manufacturing (TSM) added insult to injury just a day later when it gave a dim full-year outlook for smartphone demand. This was followed up in recent days by similarly downbeat forecasts from fellow chipmakers SK Hynix and AMS.
However, the sector could be ready to rebound some. Specifically, STMicroelectronics NV (STM) just painted a much brighter picture with its rest-of-year outlook.
STMicroelectronics shares are trading up 4.8% this morning, thanks to the company’s better-than-expected first-quarter results. More importantly, CEO Carlo Bozotti said, “For the second half of the year, we see healthy demand ... including smartphones.” Bozotti specifically noted strong demand in the automotive space, as well.
STM stock is now back in the black on a year-to-date basis, recently enjoying support from the 200-day moving average. While the security has some ground to make up to reclaim the multi-year high of $25.30 from January, it still sports a year-over-year lead north of 40%. Considering this, it’s not surprising to note that all five covering brokerage firms say the chipmaker is a “strong buy.”
Bernie Schaeffer, Schaeffer’s Investment Research, http://www.SchaeffersResearch.com,
800-327-8833, April 25, 2018