STMicroelectronics ( STM ) is forming a base with a 24.90 buy point as it gets set to report its next round of earnings on Jan. 24. The current formation is a second-stage cup without handle .
[ibd-display-video id=2881825 width=50 float=left autostart=true] Understand that buying a stock close to earnings is risky, since an EPS or sales miss could send it sharply lower. You can minimize your risk by waiting to see the actual numbers and the market's reaction. Another way to minimize the risk of a post-earnings sell-off is to use an options strategy .
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Earnings growth declined in the most recent report from 325% to 155%. But revenue moved higher, from 13% to 19%.
Analysts are looking for EPS growth of 133% for the quarter, and 236% growth for the full year. Annual growth estimates were recently revised upward.
The company has a 91 Composite Rating and holds the No. 4 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. Texas Instruments ( TXN ) is the No. 1-ranked stock within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.