Price Action Don’t Lie: Is Buying 52-Week Stock Like STMicroelectronics NV (ADR) a Winning Strategy?

Price Action Don't Lie: Is Buying 52 Week Stock Like STMicroelectronics NV (ADR) a Winning Strategy?

The stock of STMicroelectronics NV (ADR) (NYSE:STM) hit a new 52-week high and has $10.38 target or 26.00% above today’s $8.24 share price. The 7 months bullish chart indicates low risk for the $7.63 billion company. The 1-year high was reported on Oct, 7 by If the $10.38 price target is reached, the company will be worth $1.98B more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 260,427 shares traded hands. STMicroelectronics NV (ADR) (NYSE:STM) has risen 39.69% since March 4, 2016 and is uptrending. It has outperformed by 31.65% the S&P500.

Analysts await STMicroelectronics NV (ADR) (NYSE:STM) to report earnings on November, 3. They expect $0.09 EPS, down 25.00% or $0.03 from last year’s $0.12 per share. STM’s profit will be $83.34 million for 22.89 P/E if the $0.09 EPS becomes a reality. After $0.04 actual EPS reported by STMicroelectronics NV (ADR) for the previous quarter, Wall Street now forecasts 125.00% EPS growth.

STMicroelectronics NV (ADR) (NYSE:STM) Ratings Coverage

Out of 6 analysts covering STMicroelectronics (NYSE:STM), 1 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 17% are positive. $9.10 is the highest target while $6.90 is the lowest. The $8 average target is -2.91% below today’s ($8.24) stock price. STMicroelectronics has been the topic of 8 analyst reports since July 22, 2015 according to StockzIntelligence Inc. Natixis maintained STMicroelectronics NV (ADR) (NYSE:STM) on Monday, September 14 with “Buy” rating. Zacks downgraded the stock to “Hold” rating in Wednesday, August 5 report. As per Friday, July 24, the company rating was upgraded by HSBC. As per Friday, September 2, the company rating was downgraded by Bank of America. The rating was downgraded by Craig Hallum to “Hold” on Friday, October 30. The firm earned “Neutral” rating on Wednesday, July 22 by Citigroup. The firm earned “Hold” rating on Wednesday, January 27 by Kepler Cheuvreux.

According to Zacks Investment Research, “STMicroelectronics is a global independent semiconductor company which designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems.”

Another recent and important STMicroelectronics NV (ADR) (NYSE:STM) news was published by which published an article titled: “STMicroelectronics NV (ADR)(NYSE:STM) Bullish Trend” on September 07, 2016.

STM Company Profile

STMicroelectronics N.V., incorporated on May 21, 1987, is a global semiconductor company. The Firm is focused on Smart Driving, enabled by digitalization and electrification of the car, and the Internet of Things, including portable and wearable systems, as well as smart home, city and industry applications. The Company’s divisions include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. The Firm designs, develops, makes and markets a range of semiconductor products, including discrete and standard commodity components, application-specific integrated circuits (ASICs), custom devices and semi-custom devices and application-specific standard products (ASSPs) for analog, digital and mixed-signal applications. The Firm participates in the manufacturing value chain of smartcard products, which include the production and sale of both silicon chips and smartcards.

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