Aehr Test Systems (AEHR) Outpaces Stock Market Gains: What You Should Know
Aehr Test Systems (AEHR) closed at $36.46 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq lost 4.94%.
Coming into today, shares of the company had gained 35.39% in the past month. In that same time, the Computer and Technology sector gained 14.37%, while the S&P 500 gained 5.64%.
Wall Street will be looking for positivity from Aehr Test Systems as it approaches its next earnings report date. On that day, Aehr Test Systems is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17 million, up 11.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.61 per share and revenue of $66.1 million. These totals would mark changes of +45.24% and +30.04%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Aehr Test Systems. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Aehr Test Systems is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Aehr Test Systems has a Forward P/E ratio of 58.71 right now. This represents a premium compared to its industry's average Forward P/E of 16.85.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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