Long Term Growth Stock in Review: STMicroelectronics N.V. (NYSE:STM)

STMicroelectronics N.V. (NYSE:STM) has been recommended as a long term growth stock according to analysts at Beta Research.  With their stock price currently trading around $19.02, the firm has proven a solid track record of growth over the past few years.  Investors might consider the stock as a long term growth candidate as the firm has yielded 21.40% earnings per share growth over the past 5 years and -0.30% revenue growth over that same time frame. 

Investors may already be plotting the course for the next few quarters. Many investing decisions may need to be made after the next round of company earnings reports are released. Studying the numbers can help the investor see whether or not the stock’s prospects look good in the near term as well as the longer term. It remains to be seen whether optimism in the stock market will continue into the next year. Investors will closely be monitoring the major economic data reports over the next couple of months. While nobody can be sure which way the momentum will shift, preparing for multiple market scenarios may greatly help the investor if changes start to occur.

Long-term growth (LTG) is an investing strategy where a stock will (hopefully) grow in value for a relatively long period of time.  A “buy-and-hold” investor will consider long-term growth as a longer time period then a day trader will. The buy-and-hold strategy looks ahead farther into the future, giving short-term price swings less consideration as long as the fundamentals stay the same.  

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, STMicroelectronics N.V. (NYSE:STM)’s stock was -12.91%.  Over the last week of the month, it was 1.01%, -14.90% over the last quarter, and  -10.79% for the past six months. 

Over the past 50 days, STMicroelectronics N.V.’s stock is -22.05% off of the high and 9.12% removed from the low.  Their 52-Week High and Low are as follows: -28.04% (High), 9.12%, (Low). 

Despite the past success, investors want to know where the stock is headed from here.  Analysts covering the shares have a consensus short-term price target of $26.53 on the equity.   Analysts have a consensus recommendation of 2.30 based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell.