Allegro MicroSystems, Inc. (ALGM) Exceeds Market Returns: Some Facts to Consider
Allegro MicroSystems, Inc. (ALGM) closed at $27.78 in the latest trading session, marking a +1.02% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.
The company's shares have seen a decrease of 11.72% over the last month, not keeping up with the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76%.
The upcoming earnings release of Allegro MicroSystems, Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.21, reflecting a 43.24% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $235 million, indicating a 2.3% decline compared to the corresponding quarter of the prior year.
ALGM's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $1.04 billion. These results would represent year-over-year changes of +3.13% and +10.49%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Allegro MicroSystems, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Allegro MicroSystems, Inc. presently features a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Allegro MicroSystems, Inc. currently has a Forward P/E ratio of 20.83. This signifies a discount in comparison to the average Forward P/E of 31.18 for its industry.
We can also see that ALGM currently has a PEG ratio of 5.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry had an average PEG ratio of 3.59 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report
