Alpha and Omega Semiconductor AOSL shares rallied 10.9% in the last trading session to close at $30.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 27.8% gain over the past four weeks.
AOSL shares are benefitting from a strategic pivot toward higher-value differentiated markets in AI and advanced computing, underpinned by accelerated R&D investment funded through proceeds from the Chongqing joint venture monetization.
This chipmaker is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -240%. Revenues are expected to be $160 million, down 2.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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 belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Entegris ENTG, closed the last trading session 0.5% lower at $137.44. Over the past month, ENTG has returned 23.7%.
Entegris' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.75. Compared to the company's year-ago EPS, this represents a change of +11.9%. Entegris currently boasts a Zacks Rank of #4 (Sell).
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Alpha and Omega Semiconductor Limited (AOSL): Free Stock Analysis Report
Entegris, Inc. (ENTG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).