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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 $44.21, marking a -1.71% move from the previous day. This change lagged the S&P 500's daily loss of 1.69%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the chipmaker had lost 7.01% over the past month. This has lagged the Computer and Technology sector's gain of 5.96% and the S&P 500's gain of 7.88% in that time.

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 $1.18 per share, which would represent year-over-year growth of 53.25%. Our most recent consensus estimate is calling for quarterly revenue of $194 million, up 14.65% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.60 per share and revenue of $772.7 million. These totals would mark changes of +57% and +17.63%, respectively, from last year.

Investors might also notice 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alpha and Omega Semiconductor currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Alpha and Omega Semiconductor is currently trading at a Forward P/E ratio of 9.78. Its industry sports an average Forward P/E of 17.8, so we one might conclude that Alpha and Omega Semiconductor 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 100, which puts it in the top 40% 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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