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Alpha and Omega Semiconductor (AOSL) Outpaces Stock Market Gains: What You Should Know

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Alpha and Omega Semiconductor (AOSL - Free Report) closed at $25.67 in the latest trading session, marking a +1.62% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.42%.

Coming into today, shares of the chipmaker had lost 16.88% in the past month. In that same time, the Computer and Technology sector gained 2.29%, while the S&P 500 gained 2.64%.

AOSL will be looking to display strength as it nears its next earnings release, which is expected to be August 11, 2021. On that day, AOSL is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 158.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $170 million, up 38.89% from the year-ago period.

Any recent changes to analyst estimates for AOSL should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 #3 (Hold).

Digging into valuation, AOSL currently has a Forward P/E ratio of 8.85. Its industry sports an average Forward P/E of 18.11, so we one might conclude that AOSL is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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