Astera Labs, Inc. (ALAB) ended the recent trading session at $251.88, demonstrating a +1% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.48%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.94%.
The stock of company has risen by 44.61% in the past month, leading the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Astera Labs, Inc. in its upcoming earnings disclosure. In that report, analysts expect Astera Labs, Inc. to post earnings of $0.39 per share. This would mark year-over-year growth of 69.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $206.73 million, up 82.8% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.58 per share and a revenue of $766.55 million, demonstrating changes of +88.1% and +93.43%, respectively, from the preceding year.
Any recent changes to analyst estimates for Astera Labs, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Astera Labs, Inc. is presently being traded at a Forward P/E ratio of 157.41. This signifies a premium in comparison to the average Forward P/E of 31.99 for its industry.
It's also important to note that ALAB currently trades at a PEG ratio of 3.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 2.27 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Astera Labs, Inc. (ALAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
