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Astera Labs, Inc. (ALAB) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Astera Labs, Inc. (ALAB - Free Report) closed at $90.80, marking a +2.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.02%.

Shares of the company have depreciated by 6.98% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.25%, and the S&P 500's gain of 4.99%.

The investment community will be paying close attention to the earnings performance of Astera Labs, Inc. in its upcoming release. In that report, analysts expect Astera Labs, Inc. to post earnings of $0.33 per share. This would mark year-over-year growth of 153.85%. Meanwhile, our latest consensus estimate is calling for revenue of $172.71 million, up 124.74% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $702.43 million, which would represent changes of +60.71% and +77.25%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Astera Labs, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Astera Labs, Inc. currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Astera Labs, Inc. is holding a Forward P/E ratio of 65.45. This signifies a premium in comparison to the average Forward P/E of 28.74 for its industry.

Meanwhile, ALAB's PEG ratio is currently 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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 Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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