Strength Seen in Astera Labs, Inc. (ALAB): Can Its 19.4% Jump Turn into More Strength?

Astera Labs, Inc. ALAB shares ended the last trading session 19.3% higher at $121.89. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.7% gain over the past four weeks.

Astera Labs is benefiting from strong demand for Aries and Taurus product families.ALAB expects accelerated shipments of Scorpio P-Series switches and Aries 6 retimers on a customized rack-scale AI platform based on market-leading GPUs to boost top-line growth.

This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +153.9%. Revenues are expected to be $172.71 million, up 124.7% 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 Astera Labs, Inc., 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 ALAB 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 >>>>

Astera Labs, Inc. is a member of the Zacks Internet - Software industry. One other stock in the same industry, Exodus Movement, Inc. EXOD, finished the last trading session 11.8% lower at $33.61. EXOD has returned 20.4% over the past month.

Exodus Movement, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. Compared to the company's year-ago EPS, this represents a change of +78.4%. Exodus Movement, Inc. currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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