STMicroelectronics
STM
Real-time TRADEGATE AG - 09/25 09:01:36 am
16.19EUR
+0.31%

Good timing to anticipate the return of volatility

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Anas Lozach
Analyst

Strategy published on : 03/06/2018 | 09:53

long trade
Target price hit

Entry price : 18.285€
Target : 22€
Stop-loss : 16.3€
Potential : 20.32%

STMicroelectronics shares stand out with an interesting technical chart pattern displaying horizontal consolidation. One would assume that the current accumulation phase will cede eventually to an acceleration to the upside.
Investors have an opportunity to buy the stock and target the € 22.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Historically, the company has been releasing figures that are above expectations.

● Sales forecast by analysts have been recently revised upwards.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 16.35 EUR


Weaknesses

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

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