STMicroelectronics’ +5.16% Move Has Earnings Support, Not a Blank Cheque

I view the +5.16% session move as directionally supported by the latest results, not proof that the shares are cheap. Q3 revenue rose 17.9% year over year, EPS increased 20.2% to €0.31, and free cash flow jumped 123.5% to €295M—evidence of a meaningful recovery. But the longer EPS record remains severe: annual EPS fell from €4.740 in 2022 to €0.180 in 2025, and there are no forward consensus estimates here to confirm sustained growth. At 86.1x trailing earnings, ST is also more expensive than Infineon at 56.0x. The 12-month share gain of 104.1% reinforces the need for restraint. The move does not change my cautious-positive view: I will initiate a small position, not chase aggressively.