5 Undervalued European Stocks For The Rest of 2022

In this article, we discuss 5 undervalued European stocks for the rest of 2022. If you want to see more stocks in this selection, check out 10 Undervalued European Stocks For The Rest of 2022. 

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

Number of Hedge Fund Holders: 18

P/E Ratio as of November 7: 8.62

STMicroelectronics N.V. (NYSE:STM) is headquartered in Geneva, Switzerland, and the company designs, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group, Analog, MEMS and Sensors Group, and Microcontrollers and Digital ICs Group segments.  

On October 27, STMicroelectronics N.V. (NYSE:STM) reported its third quarter results, posting GAAP earnings per share of $1.16 and a revenue of $4.32 billion, outperforming Wall Street consensus by $0.11 and $80 million, respectively. The revenue climbed 35% on a year-over-year basis. 

Societe Generale analyst Aleksander Peterc on October 31 reiterated a Buy recommendation on STMicroelectronics N.V. (NYSE:STM) but trimmed the firm’s price target on the shares to EUR 71 from EUR 72. 

According to Insider Monkey’s data, 18 hedge funds were bullish on STMicroelectronics N.V. (NYSE:STM) at the end of Q2 2022, compared to 19 funds in the earlier quarter. Michael Rockefeller and Karl Kroeker’s Woodline Partners is the leading position holder in the company, with 3.17 million shares worth nearly $100 million. 

Here is what Saturna Capital has to say about STMicroelectronics N.V. (NYSE:STM) in its Q3 2021 investor letter:

“STMicroelectronics has a goal of becoming carbon neutral by 2027, and in 2020 reported that their greenhouse gas emissions were down 19% over the previous year. In 2020, STMicroelectronics was the only semiconductor company with targets approved by the Science Based Targets Initiative for limiting warming to 1.5 degrees Celsius, and their 2027 net-zero goal is recognized as one of the most ambitious in the industry. As greenwashing presents a growing concern within the ESG community, and as more and more funds engage in re-branding exercises that have little to do with pursuing sustainable investment practices among others, our definition of sustainability includes financial sustainability, most often demonstrated by intelligent capital allocation leading to solid cash flows that can sustain a business without resorting to excessive leverage.”