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

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Alpha and Omega Semiconductor (AOSL - Free Report) closed the most recent trading day at $32.01, moving -0.65% from the previous trading session. This change lagged the S&P 500's 0.09% loss on the day.

Prior to today's trading, shares of the chipmaker had gained 1.87% over the past month. This has lagged the Computer and Technology sector's gain of 10.43% and the S&P 500's gain of 5.45% in that time.

Wall Street will be looking for positivity from AOSL as it approaches its next earnings report date. This is expected to be May 5, 2021. The company is expected to report EPS of $0.55, up 400% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $157 million, up 46.93% from the year-ago period.

AOSL's full-year Zacks Consensus Estimates are calling for earnings of $2.35 per share and revenue of $628.45 million. These results would represent year-over-year changes of +167.05% and +35.18%, respectively.

It is also important to note the recent changes to analyst estimates for AOSL. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AOSL currently has a Zacks Rank of #3 (Hold).

Investors should also note AOSL's current valuation metrics, including its Forward P/E ratio of 13.74. Its industry sports an average Forward P/E of 20.81, so we one might conclude that AOSL is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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