Here's Why Astera Labs, Inc. (ALAB) Fell More Than Broader Market
In the latest close session, Astera Labs, Inc. (ALAB) was down 2.51% at $92.91. The stock's performance was behind the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.
The company's shares have seen an increase of 5.23% over the last month, surpassing the Computer and Technology sector's loss of 0% and the S&P 500's gain of 1.44%.
The investment community will be closely monitoring the performance of Astera Labs, Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.33, up 153.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $172.71 million, up 124.74% from the year-ago period.
ALAB's full-year Zacks Consensus Estimates are calling for earnings of $1.35 per share and revenue of $702.43 million. These results would represent year-over-year changes of +60.71% and +77.25%, respectively.
Investors should also note any recent changes to analyst estimates for Astera Labs, Inc. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 2.74% rise in the Zacks Consensus EPS estimate. Astera Labs, Inc. currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Astera Labs, Inc. is currently being traded at a Forward P/E ratio of 193.92. This expresses a premium compared to the average Forward P/E of 45.44 of its industry.
One should further note that ALAB currently holds a PEG ratio of 4.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 3.23.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 20% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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 Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Error in retrieving data
Sign in to access your portfolio
Error in retrieving data
Error in retrieving data
Error in retrieving data
Error in retrieving data
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
6 minutes ago
- Bloomberg
Fed Stays the Course as Divisions Creep In
US Federal Reserve officials continued to pencil in two interest-rate cuts in 2025, though new projections showed a growing divide among policymakers over the trajectory for borrowing costs as the shockwaves from Donald Trump's tariffs make their way through the US economy. Seven officials now foresee no rate cuts this year, compared with four in March, and two others pointed to one cut. At the same time, 10 officials expect it will be appropriate to lower rates at least twice before the end of 2025. Fed officials and economists broadly expect the president's expanded use of tariffs—most of which are the subject of litigation as potentially illegal—to weigh on economic activity and put upward pressure on prices if they remain in place. Add to that a proposed bill in Congress that could add $3.4 trillion to the national debt, and nervousness in the near term is likely to remain.
Bloomberg
21 minutes ago
- Bloomberg
Platinum Rallies to the Highest Since 2014 Amid Market Tightness
Platinum extended a powerful rally to hit the highest level in more than a decade, with gains underpinned by a spike in demand and expectations for a market deficit. Spot prices surged by more than 2% to $1,350.17 an ounce, the highest level since September 2014. In a sign of near-term tightness, metal for immediate delivery has been trading at a premium to futures.
Bloomberg
32 minutes ago
- Bloomberg
Stock Movers: Circle, Marvell, Netflix
On this episode of Stock Movers: - Stablecoin issuer Circle (CRCL) shares rose as much as 9.8% on Wednesday after the US Senate passed stablecoin legislation setting up regulatory rules for crypto currencies pegged to the dollar. The stablecoin vote is the industry's most tangible return yet on the hundreds of millions of dollars it poured into electing a crypto-friendly Congress. As of the last close, the stock has risen more than 380% from its IPO price of $31. Visa (V) and Mastercard (MA) both fell as much as 5% amid continued worries about the impact of stablecoins on the credit-card issuers. - Marvell Technology (MRVL) also rallied today. Analysts are now positive on the chip maker after first quarter earnings that came in line with expectations. Following an event focused on AI, Marvell raised its overall data center total addressable market to $94 billion by 2028, up from $75 billion. - Netflix (NFLX) is up 38% year-to-date today after an announcement that the streamer will add live television channels and shows from French broadcaster TF1, expanding Netflix's live offerings for customers in the country. French customers will be be able to watch live feeds, including sports, from TF1's channels, and stream the broadcaster's shows on demand from next summer, Netflix said in a statement on Wednesday. Netflix will dedicate a portion of the app to TF1 content as part of the distribution agreement. Netflix is expanding the content it offers customers and has invested in live events such as National Football League games and wrestling matches. The French partnership goes a step further, offering traditional live broadcast content such as dramas and reality television.
