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

·3 min read

Alpha and Omega Semiconductor (AOSL) closed at $43.35 in the latest trading session, marking a +1.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.19%.

Prior to today's trading, shares of the chipmaker had lost 22.57% over the past month. This has lagged the Computer and Technology sector's loss of 10.69% and the S&P 500's loss of 5.39% in that time.

Alpha and Omega Semiconductor will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2022. On that day, Alpha and Omega Semiconductor is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 61.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $188 million, up 18.37% from the year-ago period.

AOSL's full-year Zacks Consensus Estimates are calling for earnings of $4.08 per share and revenue of $747.25 million. These results would represent year-over-year changes of +39.25% and +13.75%, respectively.

Any recent changes to analyst estimates for Alpha and Omega Semiconductor should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Alpha and Omega Semiconductor is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Alpha and Omega Semiconductor currently has a Forward P/E ratio of 10.5. This valuation marks a discount compared to its industry's average Forward P/E of 18.69.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.

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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