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Alpha and Omega Semiconductor (AOSL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Alpha and Omega Semiconductor (AOSL - Free Report) closed at $48.60, marking a -0.78% move from the previous day. This change lagged the S&P 500's 0.43% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 0.62%.

Coming into today, shares of the chipmaker had lost 14.37% in the past month. In that same time, the Computer and Technology sector lost 9.41%, while the S&P 500 lost 6.57%.

Alpha and Omega Semiconductor will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alpha and Omega Semiconductor to post earnings of $1.18 per share. This would mark year-over-year growth of 53.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $194 million, up 14.65% from the year-ago period.

AOSL's full-year Zacks Consensus Estimates are calling for earnings of $4.60 per share and revenue of $772.7 million. These results would represent year-over-year changes of +57% and +17.63%, respectively.

Any recent changes to analyst estimates for Alpha and Omega Semiconductor should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 5.71% higher. Alpha and Omega Semiconductor is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Alpha and Omega Semiconductor is holding a Forward P/E ratio of 10.65. For comparison, its industry has an average Forward P/E of 19.49, which means Alpha and Omega Semiconductor is trading at a discount to the group.

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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