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

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Alpha and Omega Semiconductor (AOSL - Free Report) closed at $50.56 in the latest trading session, marking a +0.28% move from the prior day. This move outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the chipmaker had gained 13.1% over the past month. This has outpaced the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 0.62% in that time.

Alpha and Omega Semiconductor will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.05, up 61.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $188 million, up 18.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $747.25 million, which would represent changes of +39.25% and +13.75%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Alpha and Omega Semiconductor. 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.

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.

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. 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 12.37. This valuation marks a discount compared to its industry's average Forward P/E of 23.46.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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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