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Allegro MicroSystems, Inc. (ALGM) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Allegro MicroSystems, Inc. (ALGM - Free Report) ending at $26.95, denoting a +0.56% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.12%.

Shares of the company witnessed a loss of 12.96% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.59% and the S&P 500's gain of 3.55%.

The upcoming earnings release of Allegro MicroSystems, Inc. will be of great interest to investors. In that report, analysts expect Allegro MicroSystems, Inc. to post earnings of $0.21 per share. This would mark a year-over-year decline of 43.24%. At the same time, our most recent consensus estimate is projecting a revenue of $235 million, reflecting a 2.3% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $1.04 billion. These totals would mark changes of +3.13% and +10.49%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Allegro MicroSystems, Inc. is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, Allegro MicroSystems, Inc. currently has a Forward P/E ratio of 20.3. This signifies a discount in comparison to the average Forward P/E of 32.83 for its industry.

Also, we should mention that ALGM has a PEG ratio of 5.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 3.29 at yesterday's closing price.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% of all 250+ industries.

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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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