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

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In the latest trading session, Alpha and Omega Semiconductor (AOSL - Free Report) closed at $32.83, marking a -1.23% move from the previous day. This change lagged the S&P 500's daily gain of 0.18%.

Prior to today's trading, shares of the chipmaker had lost 1.1% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.76% and lagged the S&P 500's gain of 2.96% 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 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Within the past 30 days, our consensus EPS projection remained stagnant. AOSL is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, AOSL is holding a Forward P/E ratio of 9.76. Its industry sports an average Forward P/E of 21.03, 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 49, which puts it in the top 20% 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.

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


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