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Aehr Test Systems (AEHR) Rises But Trails Market: What Investors Should Know

The most recent trading session ended with Aehr Test Systems (AEHR) standing at $25.48, reflecting a +0.28% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.41% gain on the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.46%.

The company's stock has dropped by 22.95% in the past month, falling short of the Computer and Technology sector's gain of 9.89% and the S&P 500's gain of 7.62%.

The upcoming earnings release of Aehr Test Systems will be of great interest to investors. The company is expected to report EPS of $0.18, up 12.5% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $20.1 million, indicating a 35.63% upward movement from the same quarter last year.

AEHR's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $105.3 million. These results would represent year-over-year changes of +77.97% and +62.1%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Aehr Test Systems. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Aehr Test Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Aehr Test Systems's current valuation metrics, including its Forward P/E ratio of 24.2. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 24.2.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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