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

·3 min read

Alpha and Omega Semiconductor (AOSL) closed the most recent trading day at $64.95, moving -0.32% from the previous trading session. This change lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.33%.

Heading into today, shares of the chipmaker had gained 22.02% over the past month, outpacing the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 3.76% in that time.

Wall Street will be looking for positivity from Alpha and Omega Semiconductor as it approaches its next earnings report date. On that day, Alpha and Omega Semiconductor is projected to report earnings of $1.18 per share, which would represent year-over-year growth of 53.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $194 million, up 14.65% from the year-ago period.

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.

Investors might also notice recent changes to analyst estimates for Alpha and Omega Semiconductor. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Alpha and Omega Semiconductor has a Forward P/E ratio of 14.16 right now. This represents a discount compared to its industry's average Forward P/E of 21.24.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% 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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