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Allegro MicroSystems, Inc. (ALGM) Increases Despite Market Slip: Here's What You Need to Know

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Allegro MicroSystems, Inc. (ALGM - Free Report) closed the latest trading day at $27.69, indicating a +0.07% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 1.18%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.76%.

Shares of the company have depreciated by 13.15% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.96% and the S&P 500's loss of 3.35%.

Market participants will be closely following the financial results of Allegro MicroSystems, Inc. in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is expected to report EPS of $0.37, up 19.35% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $275 million, reflecting a 15.71% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.45 per share and revenue of $1.06 billion, which would represent changes of +13.28% and +11.99%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Allegro MicroSystems, Inc. Such recent modifications usually signify the changing landscape of near-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Allegro MicroSystems, Inc. currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Allegro MicroSystems, Inc. is holding a Forward P/E ratio of 19.08. This expresses a discount compared to the average Forward P/E of 24.17 of its industry.

One should further note that ALGM currently holds a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Electronics - Semiconductors industry had an average PEG ratio of 3.95.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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