Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Alpha and Omega Semiconductor (AOSL - Free Report) closed at $33.34, marking a +0.76% move from the previous day. This move outpaced the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the chipmaker had lost 23.56% in the past month. In that same time, the Computer and Technology sector lost 7.53%, while the S&P 500 lost 8.06%.

Wall Street will be looking for positivity from Alpha and Omega Semiconductor as it approaches its next earnings report date. In that report, analysts expect Alpha and Omega Semiconductor to post earnings of $0.86 per share. This would mark a year-over-year decline of 9.47%. Meanwhile, our latest consensus estimate is calling for revenue of $190 million, up 7.16% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.46 per share and revenue of $773.9 million, which would represent changes of +52.22% and +17.81%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Alpha and Omega Semiconductor. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Alpha and Omega Semiconductor is currently a Zacks Rank #4 (Sell).

Digging into valuation, Alpha and Omega Semiconductor currently has a Forward P/E ratio of 7.43. This represents a discount compared to its industry's average Forward P/E of 14.63.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.

To follow AOSL in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Alpha and Omega Semiconductor Limited (AOSL) - free report >>

Published in