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Alpha and Omega Semiconductor (AOSL) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Alpha and Omega Semiconductor (AOSL) closed at $33.13, marking a +1.94% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.

Prior to today's trading, shares of the chipmaker had lost 17.34% over the past month. This has lagged the Computer and Technology sector's loss of 9.55% and the S&P 500's loss of 10.02% in that time.

Investors will be hoping for strength from Alpha and Omega Semiconductor as it approaches its next earnings release. In that report, analysts expect Alpha and Omega Semiconductor to post earnings of $0.86 per share. This would mark a year-over-year decline of 9.47%. Our most recent consensus estimate is calling for quarterly revenue of $190 million, up 7.16% from the year-ago period.

AOSL's full-year Zacks Consensus Estimates are calling for earnings of $4.46 per share and revenue of $773.9 million. These results would represent year-over-year changes of +52.22% and +17.81%, respectively.

Investors should also note any recent changes to analyst estimates for Alpha and Omega Semiconductor. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alpha and Omega Semiconductor is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, Alpha and Omega Semiconductor currently has a Forward P/E ratio of 7.44. For comparison, its industry has an average Forward P/E of 14.33, which means Alpha and Omega Semiconductor is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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