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Astera Labs, Inc. (ALAB) Surpasses Market Returns: Some Facts Worth Knowing

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Astera Labs, Inc. (ALAB - Free Report) ended the recent trading session at $119.48, demonstrating a +2.2% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.

Coming into today, shares of the company had gained 33.98% in the past month. In that same time, the Computer and Technology sector gained 8.76%, while the S&P 500 gained 5.88%.

The investment community will be paying close attention to the earnings performance of Astera Labs, Inc. in its upcoming release. The company is slated to reveal its earnings on August 5, 2025. It is anticipated that the company will report an EPS of $0.33, marking a 153.85% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $172.71 million, showing a 124.74% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.35 per share and a revenue of $702.43 million, signifying shifts of +60.71% and +77.25%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Astera Labs, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Right now, Astera Labs, Inc. possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Astera Labs, Inc. is currently trading at a Forward P/E ratio of 86.39. For comparison, its industry has an average Forward P/E of 29.16, which means Astera Labs, Inc. is trading at a premium to the group.

One should further note that ALAB currently holds a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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