Aehr Test Systems (AEHR) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Aehr Test Systems (AEHR) closed at $14.87, marking a -0.73% move from the previous day. This change lagged the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Heading into today, shares of the company had lost 12.4% over the past month, lagging the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11% in that time.
Investors will be eagerly watching for the performance of Aehr Test Systems in its upcoming earnings disclosure. In that report, analysts expect Aehr Test Systems to post earnings of $0.17 per share. This would mark year-over-year growth of 6.25%. Our most recent consensus estimate is calling for quarterly revenue of $14.7 million, down 14.58% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.80 per share and a revenue of $75.2 million, indicating changes of +35.59% and +15.76%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Aehr Test Systems. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Aehr Test Systems boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Aehr Test Systems is currently exchanging hands at a Forward P/E ratio of 18.73. This represents a discount compared to its industry's average Forward P/E of 24.24.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 212, this industry ranks in the bottom 16% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AEHR in the coming trading sessions, be sure to utilize Zacks.com.
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Aehr Test Systems (AEHR) : Free Stock Analysis Report
