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Allegro MicroSystems, Inc. (ALGM) Outperforms Broader Market: What You Need to Know

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In the latest market close, Allegro MicroSystems, Inc. (ALGM - Free Report) reached $25.74, with a +0.23% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.11% for the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.

Heading into today, shares of the company had lost 12.71% over the past month, lagging the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Allegro MicroSystems, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.21, indicating a 43.24% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $235 million, indicating a 2.3% decrease compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Allegro MicroSystems, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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, there's been no change in the Zacks Consensus EPS estimate. Right now, Allegro MicroSystems, Inc. possesses a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Allegro MicroSystems, Inc. has a Forward P/E ratio of 27.32 right now. This indicates a discount in contrast to its industry's Forward P/E of 32.69.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

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