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Here's Why Allegro MicroSystems, Inc. (ALGM) Fell More Than Broader Market
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Allegro MicroSystems, Inc. (ALGM - Free Report) ended the recent trading session at $30.37, demonstrating a -1.78% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.12%.
The company's shares have seen a decrease of 14.09% over the last month, not keeping up with the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.
Analysts and investors alike will be keeping a close eye on the performance of Allegro MicroSystems, Inc. in its upcoming earnings disclosure. On that day, Allegro MicroSystems, Inc. is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 19.35%. Alongside, our most recent consensus estimate is anticipating revenue of $275 million, indicating a 15.71% upward movement from the same quarter last year.
ALGM's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $1.06 billion. These results would represent year-over-year changes of +13.28% and +16.97%, respectively.
Investors might also notice recent changes to analyst estimates for Allegro MicroSystems, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Allegro MicroSystems, Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Allegro MicroSystems, Inc. is presently being traded at a Forward P/E ratio of 21.32. This signifies a discount in comparison to the average Forward P/E of 27.21 for its industry.
It is also worth noting that ALGM currently has a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry had an average PEG ratio of 4.02 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.
To follow ALGM in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Allegro MicroSystems, Inc. (ALGM) Fell More Than Broader Market
Allegro MicroSystems, Inc. (ALGM - Free Report) ended the recent trading session at $30.37, demonstrating a -1.78% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.12%.
The company's shares have seen a decrease of 14.09% over the last month, not keeping up with the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.
Analysts and investors alike will be keeping a close eye on the performance of Allegro MicroSystems, Inc. in its upcoming earnings disclosure. On that day, Allegro MicroSystems, Inc. is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 19.35%. Alongside, our most recent consensus estimate is anticipating revenue of $275 million, indicating a 15.71% upward movement from the same quarter last year.
ALGM's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $1.06 billion. These results would represent year-over-year changes of +13.28% and +16.97%, respectively.
Investors might also notice recent changes to analyst estimates for Allegro MicroSystems, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Allegro MicroSystems, Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Allegro MicroSystems, Inc. is presently being traded at a Forward P/E ratio of 21.32. This signifies a discount in comparison to the average Forward P/E of 27.21 for its industry.
It is also worth noting that ALGM currently has a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry had an average PEG ratio of 4.02 as trading concluded yesterday.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.
To follow ALGM in the coming trading sessions, be sure to utilize Zacks.com.