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

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Alpha and Omega Semiconductor (AOSL) closed at $33.13 in the latest trading session, marking a +1.94% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the chipmaker had lost 19.4% over the past month. This has lagged the Computer and Technology sector's loss of 8.36% and the S&P 500's loss of 8.32% in that time.

Wall Street will be looking for positivity from Alpha and Omega Semiconductor as it approaches its next earnings report date. The company is expected to report EPS of $0.86, down 9.47% from the prior-year quarter. 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 might also notice recent changes to analyst estimates for Alpha and Omega Semiconductor. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alpha and Omega Semiconductor is currently a Zacks Rank #4 (Sell).

Investors should also note Alpha and Omega Semiconductor's current valuation metrics, including its Forward P/E ratio of 7.3. This valuation marks a discount compared to its industry's average Forward P/E of 14.2.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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