Astera Labs, Inc. (ALAB) Sees Decline
In the latest trading session, Astera Labs, Inc. (ALAB) experienced a drop of 2.51%, closing at $92.91. This decline surpassed the broader market, with the S&P 500 down 0.84%, the Dow losing 0.7%, and the Nasdaq, which is heavily weighted towards technology stocks, decreasing by 0.91%.
Monthly Performance
Despite this setback, Astera Labs has shown resilience with a 5.23% increase over the past month, outperforming the Computer and Technology sector, which remained unchanged, and the S&P 500, which gained 1.44%.
Upcoming Earnings Report
Investors will be keenly awaiting Astera Labs, Inc.'s upcoming earnings report, with expectations of an earnings per share (EPS) of $0.33, indicating a remarkable year-over-year growth of 153.85%. Additionally, the Zacks Consensus Estimate for revenue stands at $172.71 million, reflecting a significant increase of 124.74% from the previous year.
Full-Year Projections
The full-year Zacks Consensus Estimates forecast earnings of $1.35 per share and revenue of $702.43 million, representing year-over-year increases of 60.71% and 77.25%, respectively.
Analyst Estimates and Zacks Rank
Investors should also pay attention to recent changes in analyst estimates for Astera Labs, as these revisions can indicate the evolving business landscape. Positive revisions often signal optimism and can influence stock performance. The Zacks Rank, a proprietary model that incorporates these estimate changes, currently rates Astera Labs as #2 (Buy), with a historical average annual gain of +25% for #1 stocks since 1988.
Valuation Metrics
Presently, Astera Labs is trading at a Forward P/E ratio of 193.92, which is significantly higher than the industry average of 45.44. Furthermore, the company has a PEG ratio of 4.48, compared to the Internet - Software industry average of 3.23, which factors in anticipated earnings growth.
Industry Context
The Internet - Software industry, part of the broader Computer and Technology sector, holds a Zacks Industry Rank of 47, placing it in the top 20% of over 250 industries. This ranking suggests that companies in the top half tend to outperform those in the bottom half by a ratio of 2 to 1.
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