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Alpha and Omega Semiconductor (AOSL) Gains As Market Dips: What You Should Know

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Alpha and Omega Semiconductor (AOSL - Free Report) closed at $34.88 in the latest trading session, marking a +1.63% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.76%.

Prior to today's trading, shares of the chipmaker had lost 5.97% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.54% and lagged the S&P 500's gain of 0.17% in that time.

Investors will be hoping for strength from AOSL as it approaches its next earnings release. On that day, AOSL is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $157 million, up 46.93% from the year-ago period.

AOSL's full-year Zacks Consensus Estimates are calling for earnings of $2.35 per share and revenue of $628.45 million. These results would represent year-over-year changes of +167.05% and +35.18%, respectively.

It is also important to note the recent changes to analyst estimates for AOSL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. AOSL is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, AOSL currently has a Forward P/E ratio of 14.64. For comparison, its industry has an average Forward P/E of 20.65, which means AOSL is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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