In the latest trading session, Allegro MicroSystems, Inc. (ALGM) closed at $39.48, marking a -0.03% move from the previous day. This change lagged the S&P 500's daily gain of 1.45%. Meanwhile, the Dow gained 2.12%, and the Nasdaq, a tech-heavy index, added 5.41%.
Heading into today, shares of the company had gained 7.98% over the past month, lagging the Computer and Technology sector's gain of 10.26% and outpacing the S&P 500's gain of 1.53% in that time.
Investors will be hoping for strength from Allegro MicroSystems, Inc. as it approaches its next earnings release. On that day, Allegro MicroSystems, Inc. is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 54.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $275 million, up 26.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $1.03 billion. These totals would mark changes of +9.38% and +9.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Allegro MicroSystems, Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8% higher within the past month. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Allegro MicroSystems, Inc. is currently trading at a Forward P/E ratio of 28.31. This represents a premium compared to its industry's average Forward P/E of 19.19.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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