10 Oversold Tech Stocks To Buy Right Now

8. STMicroelectronics N.V. (NYSE:STM)  

Number of Hedge Fund Investors: 16  

Forward P/E Ratio as of October 15: 10.55  

YTD Performance as of October 15: -43.49%  

STMicroelectronics N.V. (NYSE:STM) is a global leader in semiconductor solutions for automotive, industrial, and consumer markets. The company is known for its innovation in integrated circuits and sensors.

STMicroelectronics N.V. (NYSE:STM) is well-positioned to capitalize on the long-term growth prospects of the electric vehicle (EV) market and the increasing electrification and digitalization of cars. The company’s specialized SiC semiconductors are in high demand for EVs, and the EV market is expected to grow at a 6.6% CAGR from 2024 to 2029. Additionally, the increasing connectivity of products in the Industrial segment is expected to drive growth in the Internet of Things (IoT) market.

The company’s financials have been impacted by the current industry normalization and weak end markets, but its long-term track record shows good revenue growth at an 8.0% CAGR from 2014 to current trailing revenues as of Q2. STMicroelectronics N.V. (NYSE:STM) has also spent a significant amount of capital to expand its manufacturing capacity, with capital expenditures trailing at $4.07 billion.

Despite the current uncertainty and short-term headwinds, STMicroelectronics N.V.’s (NYSE:STM) long-term earnings outlook is strong. The company’s specialized products, commitment to growth, and attractive valuation make it a compelling investment opportunity. As the industry normalizes and demand recovers, STMicroelectronics N.V. (NYSE:STM) is well-positioned to capitalize on the growth prospects of the EV and IoT markets. With a consensus Buy rating from industry analysts, the stock has a target price of $39.19, which represents a 35.90% upside potential from its current level.