Should I Buy STEM? STEM 2026 Analysis

Should You Buy Stem Inc (STEM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

16.620

1 Day change

-1.89%

52 Week Range

32.230

Analysis Updated At

2026/01/26

Stem Inc is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite some positive catalysts like the shift to higher-margin software revenue and improved gross margins, the company's financial performance shows significant net income and EPS declines. Insider selling and lack of strong trading signals further suggest caution. Holding or waiting for a better entry point is recommended.

Technical Analysis

The technical indicators are mixed. The MACD is positive but contracting, and the RSI is neutral at 48.967. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near the pivot level of 18.902. Support levels are at 16.77 and 15.453, while resistance levels are at 21.033 and 22.35.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Transition to a high-margin software and services model.
Improved gross margins (up 60.14% YoY).
Positive EBITDA for the second consecutive quarter.

Neutral/Negative Catalysts

Significant insider selling (up 535.60% in the last month).
Net income and EPS have dropped significantly (-83.96% and -84.43% YoY, respectively).
Lack of recent news or event-driven catalysts.
Hedge funds remain neutral.

Financial Performance

In Q3 2025, revenue increased by 30.54% YoY to $38.24M, but net income dropped by 83.96% YoY to -$23.79M. EPS also declined by 84.43% YoY to -2.84. Gross margin improved to 35.52%, up 60.14% YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have raised price targets recently (Barclays: $18, UBS: $18, Roth Capital: $23) due to the company's strategic shift to software revenue and cost-cutting measures. However, ratings remain Neutral or Equal Weight, reflecting cautious optimism.

4 Analyst Rating

Wall Street analysts forecast STEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STEM is 19.25 USD with a low forecast of 18 USD and a high forecast of 23 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

4 Hold

0 Sell

Hold

Current: 16.940

Low

Averages

19.25

High

Current: 16.940

Low

Averages

19.25

High

Barclays

Equal Weight

maintain

$13 -> $18

AI Analysis

2025-10-31

Reason

Barclays

Price Target

$13 -> $18

AI Analysis

2025-10-31

maintain

Equal Weight

Reason

Barclays raised the firm's price target on Stem to $18 from $13 and keeps an Equal Weight rating on the shares following the Q3 beat. The company tightened its fiscal year guidance due to reduced volatility and stronger software revenue, the analyst tells investors in a research note.

UBS

Neutral

maintain

$16 -> $18

2025-10-31

Reason

UBS

Price Target

$16 -> $18

2025-10-31

maintain

Neutral

Reason

UBS raised the firm's price target on Stem to $18 from $16 and keeps a Neutral rating on the shares. The firm cites a faster transition to the lower revenue, but high-margin software and services model, for the price target increase.

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STEM Should I Buy

STEM Should I Buy

Should You Buy Stem Inc (STEM) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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