Back to top

Image: Bigstock

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

Read MoreHide Full Article

Alpha and Omega Semiconductor (AOSL - Free Report) closed at $28.68 in the latest trading session, marking a +1.09% move from the prior day. This move outpaced the S&P 500's daily loss of 0.77%.

Heading into today, shares of the chipmaker had gained 3.92% over the past month, outpacing the Computer and Technology sector's gain of 3.13% and the S&P 500's gain of 1.55% 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 $0.95 per share, which would represent year-over-year growth of 72.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $180 million, up 18.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $704.35 million. These totals would mark changes of +16.38% and +7.22%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for AOSL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 24.49% higher. AOSL is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that AOSL has a Forward P/E ratio of 8.33 right now. This represents a discount compared to its industry's average Forward P/E of 19.99.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 119, putting it in the top 47% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alpha and Omega Semiconductor Limited (AOSL) - free report >>

Published in