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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 - Free Report) closed at $31.80, marking a +1.15% move from the previous day. This move outpaced the S&P 500's daily gain of 0.75%.

Heading into today, shares of the chipmaker had gained 7.78% over the past month, outpacing the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 0.05% in that time.

Investors will be hoping for strength from AOSL as it approaches its next earnings release, which is expected to be November 4, 2021. In that report, analysts expect AOSL to post earnings of $0.95 per share. This would mark year-over-year growth of 72.73%. Meanwhile, our latest consensus estimate is calling for revenue of $180 million, up 18.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $704.35 million. These totals would mark changes of +16.38% and +7.22%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AOSL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. AOSL is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, AOSL is holding a Forward P/E ratio of 9.23. For comparison, its industry has an average Forward P/E of 19.59, which means AOSL 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 99, putting it in the top 39% 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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