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Alpha and Omega Semiconductor (AOSL) Gains But Lags Market: What You Should Know

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Alpha and Omega Semiconductor (AOSL - Free Report) closed the most recent trading day at $54.38, moving +0.24% from the previous trading session. This move lagged the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the chipmaker had gained 18.63% in the past month. In that same time, the Computer and Technology sector lost 1.81%, while the S&P 500 lost 0.21%.

Investors will be hoping for strength from Alpha and Omega Semiconductor as it approaches its next earnings release. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.08 per share and revenue of $747.25 million. These totals would mark changes of +39.25% and +13.75%, respectively, from last year.

Investors should also note any 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alpha and Omega Semiconductor is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Alpha and Omega Semiconductor currently has a Forward P/E ratio of 13.31. This represents a discount compared to its industry's average Forward P/E of 24.67.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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