Earnings Estimates Moving Higher for STMicroelectronics (STM): Time to Buy?

Core Viewpoint - STMicroelectronics (STM) shows a favorable earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about STMicroelectronics' earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with Zacks 1 stocks averaging a +25% annual return since 2008 [3]. - There is strong consensus among analysts in raising earnings estimates for STMicroelectronics, leading to significantly higher consensus estimates for the next quarter and the full year [3]. Current-Quarter Estimates - For the current quarter, STMicroelectronics is expected to earn $0.09 per share, reflecting a year-over-year decline of -76.32% [6]. - The Zacks Consensus Estimate for the current quarter has increased by 17.91% over the last 30 days, with one estimate raised and no negative revisions [6]. Current-Year Estimates - For the full year, the expected earnings per share is $0.79, representing a year-over-year decline of -52.41% [7]. - The consensus estimate for the current year has increased by 5.63%, with two estimates moving higher and no negative revisions [8]. Zacks Rank - The positive estimate revisions have led STMicroelectronics to achieve a Zacks Rank 2 (Buy), indicating strong potential for outperformance compared to the S&P 500 [9]. Stock Performance - STMicroelectronics shares have increased by 11.6% over the past four weeks, suggesting investor confidence in its earnings growth prospects [10].