STMicroelectronics (STM) Is Today's Pre-Market Mover With Heavy Volume Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified STMicroelectronics as such a stock due to the following factors:
- STM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.5 million.
- STM traded 298,365 shares today in the pre-market hours as of 8:58 AM, representing 17.4% of its average daily volume.
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More details on STM:
STMicroelectronics N.V. designs, develops, manufactures, and markets various semiconductor integrated circuits and discrete devices worldwide. The stock currently has a dividend yield of 3.5%. Currently there is 1 analyst that rates STMicroelectronics a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for STMicroelectronics has been 2.2 million shares per day over the past 30 days. STMicroelectronics has a market cap of $8.6 billion and is part of the technology sector and electronics industry. Shares are up 30.9% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates STMicroelectronics as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the ratings report include:
- STMICROELECTRONICS NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, STMICROELECTRONICS NV turned its bottom line around by earning $0.14 versus -$0.56 in the prior year. This year, the market expects an improvement in earnings ($0.37 versus $0.14).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 219.4% when compared to the same quarter one year prior, rising from -$36.00 million to $43.00 million.
- 44.72% is the gross profit margin for STMICROELECTRONICS NV which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, STM's net profit margin of 2.35% significantly trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, STMICROELECTRONICS NV's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, STM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- You can view the full STMicroelectronics Ratings Report.
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