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Alpha and Omega Semiconductor (AOSL) Dips More Than Broader Markets: What You Should Know

·3 min read

Alpha and Omega Semiconductor (AOSL) closed the most recent trading day at $56.94, moving -1.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Heading into today, shares of the chipmaker had gained 9.15% over the past month, outpacing the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 2.67% in that time.

Wall Street will be looking for positivity from Alpha and Omega Semiconductor as it approaches its next earnings report date. In that report, analysts expect Alpha and Omega Semiconductor to post earnings of $1.18 per share. This would mark year-over-year growth of 53.25%. Meanwhile, our latest consensus estimate is calling for revenue of $194 million, up 14.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.60 per share and revenue of $772.7 million, which would represent changes of +57% and +17.63%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Alpha and Omega Semiconductor. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Alpha and Omega Semiconductor is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Alpha and Omega Semiconductor has a Forward P/E ratio of 12.56 right now. This represents a discount compared to its industry's average Forward P/E of 21.03.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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