STM
European shares gain as SAP lifts tech stocks; Middle East on watch
Article Summary
HOLD- ST Microelectronics (NYSE: STM) rose 1.7% after strong cloud backlog growth from SAP lifted European markets, while the broader STOXX 600 index gained 0.6% following a steep one-day selloff earlier in the week.
- ST Microelectronics posted strong cloud-related revenue growth and margin expansion, though earnings from Neste, which fell slightly below expectations, weighed on sentiment.
- The European Central Bank may need to raise interest rates again as inflation risks run high, according to policymakers, with markets pricing in a 70% chance of another hike by 2026.
- Valmet surged 22% after posting strong earnings, while Volkswagen dropped 1% after cutting revenue growth forecasts following a 9.5% slump in second-quarter profit.
- The U.S. administration imposed new tariffs on goods from 60 trading partners, citing allegations of lax enforcement of forced labour bans, just as temporary 10% global tariff expired.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 0.8% | 25% | 20.0 ptsMinimal (0.8%) - Very weak |
| EPS Growth Next 5Y ? | 93.6% | 25% | 100.0 ptsExceptional (93.6%) - Very high expectations |
| Target Price Upside ? | 48.7% | 20% | 95.0 ptsHuge Upside (48.7%) - Target: $76.62 vs Current: $51.54 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -36.7% | 15% | 80.0 ptsSolid Dip (-36.7%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About STM
- STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.
- The company operates through Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Embedded Processing (“EMP”); and RF Products (D&RF) segments.
- It offers industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); power management solutions; custom analog ICs, wireless charging solutions; galvanic isolated gate and LED drivers; converters, transistors, intelligent power switches, clocks and timers, comparators, and current-sense amplifiers; micro-electro-mechanical systems (MEMS) sensors, including accelerometers, gyroscopes, magnetic sensors, pressure, temperature, presence detection, biosensors, machine learning, and edge AI processing smart sensors, as well as thermal and piezoelectric actuators; and optical sensing solutions.
- The company also provides silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules and bipolar transistors; microcontrollers, and automotive microcontrollers and secured; radio frequency (RF) communications and ASICs; car infotainment products; ultra-wide band and radar systems; and Connected Security Products; and automotive driver assistance systems.
- It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets.
- STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Schiphol, the Netherlands.