In the latest trading session, Aehr Test Systems (AEHR) closed at $48.65, marking a -1.02% move from the previous day. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the company had gained 20.2% over the past month, outpacing the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 2.08% in that time.
Investors will be hoping for strength from Aehr Test Systems as it approaches its next earnings release. On that day, Aehr Test Systems is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $21.8 million, up 104.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.04 per share and revenue of $105 million. These totals would mark changes of +76.27% and +66.72%, respectively, from last year.
Any recent changes to analyst estimates for Aehr Test Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Aehr Test Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Aehr Test Systems is currently trading at a Forward P/E ratio of 47.26. For comparison, its industry has an average Forward P/E of 30.43, which means Aehr Test Systems is trading at a premium to the group.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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