Strength Seen in Alpha and Omega (AOSL): Can Its 6.7% Jump Turn into More Strength?
Alpha and Omega Semiconductor (AOSL) shares soared 6.7% in the last trading session to close at $39.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.1% gain over the past four weeks.
Alpha and Omega Semiconductor extended its rally, driven by growing momentum across its power semiconductors, including Power MOSFET, IGBT, IPM and Power IC. Increasing demand for newer products, including tablets, graphics cards and AI applications, is another positive.
This chipmaker is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -73.7%. Revenues are expected to be $160 million, down 1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Alpha and Omega, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AOSL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Alpha and Omega is part of the Zacks Electronics - Semiconductors industry. QuickLogic (QUIK), another stock in the same industry, closed the last trading session 2.7% higher at $11.12. QUIK has returned -8.1% in the past month.
For QuickLogic , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. This represents a change of +108.3% from what the company reported a year ago. QuickLogic currently has a Zacks Rank of #3 (Hold).
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Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report
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