STMicroelectronics STM shares rallied 15.2% in the last trading session to close at $79.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 25.2% gain over the past four weeks.
STMicroelectronics benefits from strong demand in AI data centers, optical interconnects, automotive ADAS systems, silicon carbide power devices, industrial microcontrollers, low-earth-orbit satellite applications and MEMS sensors.
This chip company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $3.45 billion, up 24.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For STMicroelectronics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
STMicroelectronics is a member of the Zacks Semiconductor - General industry. One other stock in the same industry, Intel INTC, finished the last trading session 1.3% lower at $107.93. INTC has returned 14.2% over the past month.
For Intel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.21. This represents a change of +310% from what the company reported a year ago. Intel currently has a Zacks Rank of #3 (Hold).
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STMicroelectronics N.V. (STM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).