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Bull of the Day: Alpha & Omega Semi (AOSL)

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The semiconductor shortage has been well documented. Look no further than your local car lot to understand the extent. From the trade war with China to COVID-related shutdowns, the supply chain disruption has had lasted economic effects. While there have been many reasons to lament the situation, few have looked on the bright side. The brightest side of them all is the semiconductor industry. With a backlog of orders, this industry is set for several quarters of continuing profits.

Today’s Bull of the Day is a stock in this industry, Alpha & Omega Semiconductor Limited (AOSL - Free Report) . Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications. The company offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors.

The stock is a Zacks Rank #1 (Strong Buy) in the Electronics – Semiconductors industry which ranks in the Top 43% of our Zacks Industry Rank. In addition to the favorable rank, the stock enjoys a Zacks Value Style Score of B, Growth of A, and Momentum of D to help it round out with a VGM Composite Score of B.

Over the last sixty days, two analysts have increased their earnings estimates for the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $2.35 to $2.72 while next year’s number is up from $2.35 to $2.86. That puts current year EPS Growth up at 209.09%. Next year’s growth is forecast to come in much lower, down at 5.15%. I suspect that number is going to increase a bit, keeping the momentum from this year’s big jump higher. Those EPS numbers are coming on revenue growth of 39.73% for the current year and 5.62% for next year.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

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