By: Scott Davis

The knock on ST has been growth below close peers like TE Connectivity and… also growth below industrial peers that we cover.  In a cyclical upturn, ST was looking very “average”.  This quarter marks the first quarter in a couple years where we can say that ST is either at or above peer levels.  We don’t know TEL yet but so far industrial co’s have been reporting 5-5.5% core growth rates with ~40 bps of margin expansion and low-mid double digit EPS growth.  ST reported 6.4% core growth, 130 bps of margin expansion, and 16% EPS growth.  Very respectable.  The stock has leaked of late and at $52 looks attractive overall.

ST Report Here