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Aehr Test Systems (AEHR) Stock Drops Despite Market Gains: Important Facts to Note

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Aehr Test Systems (AEHR - Free Report) closed the most recent trading day at $12.40, moving -0.48% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.12%.

Shares of the company have depreciated by 21.78% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.

The investment community will be paying close attention to the earnings performance of Aehr Test Systems in its upcoming release. On that day, Aehr Test Systems is projected to report earnings of -$0.04 per share, which would represent a year-over-year decline of 125%. At the same time, our most recent consensus estimate is projecting a revenue of $14.7 million, reflecting a 14.58% fall from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Aehr Test Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 45.83% decrease. Aehr Test Systems is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Aehr Test Systems has a Forward P/E ratio of 26.51 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 26.51 for its industry.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 214, placing it within the bottom 16% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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