Allegro MicroSystems, Inc. (ALGM) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Allegro MicroSystems, Inc. (ALGM) closed at $30.69, marking a -1.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.45%.
The investment community will be closely monitoring the performance of Allegro MicroSystems, Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $0.29, indicating a 17.14% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $255 million, reflecting a 2.5% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.36 per share and revenue of $1.05 billion, indicating changes of +6.25% and +11.38%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Allegro MicroSystems, Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Allegro MicroSystems, Inc. boasts a Zacks Rank of #4 (Sell).
In the context of valuation, Allegro MicroSystems, Inc. is at present trading with a Forward P/E ratio of 23. For comparison, its industry has an average Forward P/E of 28.14, which means Allegro MicroSystems, Inc. is trading at a discount to the group.
Investors should also note that ALGM has a PEG ratio of 2.32 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Electronics - Semiconductors industry stood at 4.32 at the close of the market yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 188, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report
