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

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Alpha and Omega Semiconductor (AOSL - Free Report) closed at $51.37 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Coming into today, shares of the chipmaker had gained 6.8% in the past month. In that same time, the Computer and Technology sector lost 5.93%, while the S&P 500 lost 0.85%.

Investors will be hoping for strength from Alpha and Omega Semiconductor as it approaches its next earnings release. In that report, analysts expect Alpha and Omega Semiconductor to post earnings of $1.05 per share. This would mark year-over-year growth of 61.54%. Meanwhile, our latest consensus estimate is calling for revenue of $188 million, up 18.37% from the prior-year quarter.

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 recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alpha and Omega Semiconductor currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Alpha and Omega Semiconductor is currently trading at a Forward P/E ratio of 12.75. This represents a discount compared to its industry's average Forward P/E of 22.36.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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