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Tale of the Tape

Zacks Equity Research

Why Applied Optoelectronics (AAOI) Could Be Positioned for a Surge
November 25, 2016

AAOI

Trades from $3

Applied Optoelectronics, Inc. (AAOI - Free Report) is an Electronics – Semiconductors stock that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on AAOI’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Applied Optoelectronics could be a solid choice for investors.

Current Quarter Estimates for AAOI

In the past 30 days, 2 estimates have gone higher for Applied Optoelectronics while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 27 cents a share 30 days ago, to 44 cents today, a move of 62.9%.

Current Year Estimates for AAOI

Meanwhile, Applied Optoelectronics’ current year figures are also looking quite promising, with 2 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 51 cents per share 30 days ago to 81 cents per share today, an increase of 58.8%.

APPLIED OPTOELE Price and Consensus

APPLIED OPTOELE Price and Consensus | APPLIED OPTOELE Quote

Bottom Line

The stock has also started to move higher lately, adding 17.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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