Alpha and Omega (AOSL) Soars 7.0%: Is Further Upside Left in the Stock?
Alpha and Omega Semiconductor (AOSL) shares soared 7% in the last trading session to close at $31.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6% gain over the past four weeks.
Alpha and Omega Semiconductor extended its rally, driven by its strengthening momentum across new gaming systems and PC graphics card platforms. Moreover, increasing uptake of gaming applications and digital power solutions are benefiting the company’s graphics card business. This remains a major positive. Further, Alpha and Omega Semiconductor’s expanding manufacturing capacity is a tailwind.
This chipmaker is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $153.45 million, down 20.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Alpha and Omega, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AOSL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Alpha and Omega is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, FormFactor (FORM), finished the last trading session 2.7% higher at $31.12. FORM has returned -1.8% over the past month.
FormFactor's consensus EPS estimate for the upcoming report has changed -8.6% over the past month to $0.12. Compared to the company's year-ago EPS, this represents a change of -73.9%. FormFactor currently boasts a Zacks Rank of #3 (Hold).
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Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report
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