Astera Labs, Inc. (ALAB) ended the recent trading session at $140.24, demonstrating a -3.24% change from the preceding day's closing price. This change lagged the S&P 500's 1.16% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%.
The stock of company has risen by 3.88% in the past month, leading the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.
Analysts and investors alike will be keeping a close eye on the performance of Astera Labs, Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 37.84% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $249.79 million, up 77.03% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.78 per share and revenue of $831.69 million. These totals would mark changes of +111.9% and +109.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Astera Labs, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. Astera Labs, Inc. is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Astera Labs, Inc. is currently being traded at a Forward P/E ratio of 81.58. This signifies a premium in comparison to the average Forward P/E of 28.79 for its industry.
Meanwhile, ALAB's PEG ratio is currently 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ALAB's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Astera Labs, Inc. (ALAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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