STMicroelectronics Shares Bounce 2.5% Ahead of Quarterly Results
The Franco-Italian semiconductor manufacturer regains momentum in early afternoon trading, positioning itself at the top of the Paris index. The rebound occurs just three sessions ahead of the highly anticipated second-quarter results, following a significant downturn for the stock over the past month.
A Rebound That Places the Stock Above Its 50-Day Moving Average
STMicroelectronics shares gained 2.58% to €55.19 during the session, ranking among the top risers in the CAC 40, following ArcelorMittal. The rebound is supported by the strength of the European semiconductor sector, with ASML up by 1.3% and ASM International by 0.53%. Today's movement allows the stock to exceed its 50-day moving average (€53.94), with a difference of +2.32%.
However, the 20-day moving average (€64.55) remains significantly above the current price, showing a gap of -14.5%, indicating the decline accumulated over recent weeks. The RSI at 54 has returned to a neutral zone after the correction phase. Despite today's surge, the stock is still down nearly 11% over the week and nearly 19% over the month, after being the worst performer in the index on July 16th.
Second Quarter Results Expected on Thursday in a Busy Macroeconomic Context
The session unfolds as a major event approaches: STMicroelectronics is set to publish its second-quarter 2026 results on Thursday, July 23. This will be the first test for the company after a spectacular first half in the stock market, with the stock still up more than 48% over three months and 97% over a year, despite the recent correction. According to the consensus of surveyed analysts, the stock is currently trading at about 48 times the expected earnings for the current fiscal year and 24.4 times those for the next year, a level that leaves little room for operational disappointment.
The macroeconomic backdrop is significant: US industrial production grew by 1.1% year-over-year in June and retail sales by 6.3%, while Chinese growth slowed to 4.3% in the second quarter. This mixed dynamic from China, a key market for the sector, will be closely watched in the company's comments. The effective crossing of the 50-day moving average and the behavior around the support at €52.15 will be immediate technical markers before the publication on July 23.
