Group 1 - Jabil (JBL) is outperforming the Computer and Technology sector with a year-to-date return of 53.5%, compared to the sector average of 9.8% [4] - Jabil holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 5.5% increase in the consensus estimate for full-year earnings over the past quarter [3] - The Electronics - Manufacturing Services industry, to which Jabil belongs, has seen an average gain of 44.4% year-to-date, further highlighting Jabil's strong performance within its industry [5] Group 2 - Allegro MicroSystems, Inc. (ALGM) is another stock in the Computer and Technology sector that has outperformed, with a year-to-date increase of 65.8% and a consensus EPS estimate increase of 21.8% over the past three months [4][5] - The Electronics - Semiconductors industry, which includes Allegro MicroSystems, has gained 14.9% year-to-date and is ranked 54 among 44 industries [6]

Core Viewpoint - Allegro MicroSystems, Inc. (ALGM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][4][11] Earnings Estimates and Revisions - The Zacks Consensus Estimate for Allegro MicroSystems is projected at $0.53 per share for the fiscal year ending March 2026, showing no year-over-year change [9] - Over the past three months, the Zacks Consensus Estimate for Allegro MicroSystems has increased by 21.8% [9] Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is a key determinant of stock ratings [2][3] - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8] - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10][11] Market Implications - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Allegro MicroSystems' underlying business, which could lead to higher stock prices [6][4] - The correlation between earnings estimate revisions and near-term stock movements highlights the importance of tracking these revisions for investment decisions [7][5]

Investment Rating - The report maintains a "Buy" rating for Analog Devices (ADI), Allegro MicroSystems (ALGM), Microchip Technology (MCHP), and Texas Instruments (TXN), while Onsemi (ON) is rated as "Neutral" [10][11]. Core Insights - The semiconductor industry is experiencing strong near-term demand, but there are signs of demand pull-ins due to tariff-related concerns, which is a key investor worry [2][3]. - Distributor inventory levels have normalized, particularly for Microchip Technology, which has seen a significant reduction in inventory [4][8]. - Pricing across the sector remains generally stable, with ON experiencing notable pricing pressure as it attempts to defend market share [2][4]. Semiconductor Purchaser Survey - The quarterly B2B survey indicates a net increase in demand of +75%, with expectations for future demand remaining strong at +73% [15][17]. - Nearly half of the respondents are exploring alternative supply sources outside the US or China, which is seen as a positive for European analog suppliers [3][18]. - The percentage of respondents indicating their analog semiconductor inventory is above target has significantly decreased, suggesting a healthier demand environment [3][15]. Inventory Financial Reporting Deep Dive - The report highlights that Analog Devices and Microchip Technology have lean inventory levels, positioning them well for an upcycle, while ON continues to face headwinds with high inventory levels [7][8]. - MCHP has successfully executed a turnaround plan, reducing inventory and production significantly [8][10]. - The overall inventory days for major companies like ADI, MCHP, and TXN are being closely monitored, with MCHP showing the largest decline in inventory [4][15]. Pricing Trends - Pricing for true analog semiconductors has remained flat, while power analog pricing has slightly declined, particularly for ON [4][10]. - The report notes that 68% of respondents have reported price increases, with expectations for further increases strengthening to 62% [17][18]. Market Outlook - The semiconductor market is expected to see a recovery, with TXN maintaining elevated inventory levels in anticipation of a sharp upcycle [8][10]. - The report suggests that the channel will likely begin rebuilding inventory, flipping the delta between sell-in and sell-through [8][10]. - Overall, the demand picture is improving, with significant increases in net demand expectations across various sectors, particularly in data centers [32][46].

Core Viewpoint - Allegro MicroSystems, Inc. is set to announce its financial results for the first quarter of fiscal year 2026 on July 31, 2025, with a subsequent conference call to discuss the results and business outlook [1]. Group 1: Financial Results Announcement - The financial results for the first quarter of fiscal year 2026 will be released before market open on July 31, 2025 [1]. - A conference call will be hosted by the CEO and CFO at 8:30 a.m. Eastern Time to discuss the results [1]. Group 2: Conference Call Details - Analysts and investors can join the conference call scheduled for July 31, 2025, at 8:30 a.m. EDT [2]. - Advanced registration is required for dial-in participants to receive a dedicated PIN for accessing the call [2]. - A live and archived audio webcast will be available for at least 90 days on the company's website [2]. Group 3: Company Overview - Allegro MicroSystems leverages over three decades of expertise in magnetic sensing and power ICs to advance automotive, clean energy, and industrial automation [3]. - The company is recognized for its commitment to quality and innovation in "automotive grade" technology [3].

Core Viewpoint - Allegro MicroSystems, Inc. is well-positioned to continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Allegro MicroSystems achieved earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, resulting in a surprise of 20.00% [2]. - In the previous quarter, the company was expected to post earnings of $0.06 per share but delivered $0.07 per share, yielding a surprise of 16.67% [2]. Earnings Estimates and Predictions - Recent estimates for Allegro MicroSystems have been trending higher, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Allegro MicroSystems is +5.88%, suggesting increased analyst optimism regarding its near-term earnings potential [8]. Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, indicating a high probability of beating consensus estimates [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Group 1 - Allegro MicroSystems, Inc. (ALGM) is a notable stock within the Computer and Technology sector, which ranks 5 among 16 sector groups according to the Zacks Sector Rank [2] - The Zacks Rank for ALGM is currently 2 (Buy), indicating a positive analyst sentiment with a 21.8% increase in the full-year earnings estimate over the past quarter [3] - Year-to-date, ALGM has achieved a return of approximately 64.4%, significantly outperforming the average gain of 8.2% for the Computer and Technology sector [4] Group 2 - ALGM is part of the Electronics - Semiconductors industry, which consists of 44 companies and currently ranks 143 in the Zacks Industry Rank, with the industry gaining about 14.9% year-to-date [5] - Another stock in the Computer and Technology sector, Jabil (JBL), has also outperformed the sector with a year-to-date increase of 57.1% and holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Electronics - Manufacturing Services industry, to which Jabil belongs, has seen a year-to-date increase of 47.6% and is currently ranked 47 [6]

Core Insights - The technology sector has been the top performer over the past decade, significantly outpacing other sectors, with an average annual return of 20.9% [14] - Major trends driving investment in technology include semiconductors, big data, the Internet of Things, cloud computing, machine learning, and artificial intelligence [1][4] Group 1: Technology Sector Performance - Technology investing is synonymous with growth investing, responsible for five of the top ten performing stocks in the market over the past decade [4] - The technology sector has consistently outperformed the S&P 500, with a 7 percentage point advantage over the index [14] - Nearly 32% of the S&P 500 Index's weight is assigned to the information technology sector, with tech and tech-adjacent stocks exceeding 41% [16][17] Group 2: Characteristics of Tech Stocks - The technology sector includes companies involved in IT services, software development, technology hardware distribution, and semiconductor manufacturing [11] - The classification of tech stocks has become complex due to the emergence of the communication services sector, which includes former tech companies like Meta Platforms and Alphabet [8][9] Group 3: Investment Rationale - Companies across all sectors are increasingly reliant on technology for growth, leading to sustained demand for tech stocks [12][13] - The trend of technology integration into various industries is expected to continue, reinforcing the growth potential of tech investments [12] Group 4: Identifying Top Tech Stocks - A quality screen for selecting tech stocks includes criteria such as a long-term estimated earnings-per-share growth rate of at least 15% and expected revenue growth of at least 15% annually over the next two years [19][20] - Stocks must have at least ten analysts covering them and a consensus Buy rating of 2.5 or lower to be considered for investment [20][21]

Company Overview - Allegro MicroSystems, Inc. (ALGM) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - The company has shown strong performance in the semiconductor industry, with shares up 8.06% over the past week compared to the Zacks Electronics - Semiconductors industry, which is up 1.65% [6] - Over the past month, ALGM's price change is 24.66%, significantly outperforming the industry's 7.22% [6] Price Performance - In the last three months, ALGM shares have risen 24.37%, while in the past year, they are up 17.08% [7] - In comparison, the S&P 500 has only moved 6.01% and 13.18% over the same periods [7] Trading Volume - The average 20-day trading volume for ALGM is 1,693,278 shares, indicating a bullish trend as the stock is rising with above-average volume [8] Earnings Outlook - Over the past two months, 2 earnings estimates for ALGM have moved higher, while 1 has moved lower, resulting in an increase in the consensus estimate from $0.47 to $0.53 [10] - For the next fiscal year, 2 estimates have moved upwards with no downward revisions during the same period [10] Conclusion - Considering the positive momentum indicators and earnings outlook, ALGM is positioned as a promising investment opportunity with a Momentum Score of B [12]

Company Performance - Karooooo Ltd. has returned approximately 4.7% year-to-date, outperforming the average gain of 1.5% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for Karooooo Ltd.'s full-year earnings has increased by 5.5% over the past quarter, indicating a positive earnings outlook [3] - Karooooo Ltd. currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong analyst sentiment [3] Industry Comparison - Karooooo Ltd. is part of the Internet - Software industry, which has an average year-to-date gain of 12.9%, indicating that Karooooo Ltd. is slightly underperforming its industry [6] - In contrast, Allegro MicroSystems, Inc., which is in the Electronics - Semiconductors industry, has a year-to-date return of 42.1% and a Zacks Rank of 2 (Buy) [4][5][7] - The Electronics - Semiconductors industry has gained 6.1% since the beginning of the year, ranking 82 among 45 stocks [7]

Core Viewpoint - Allegro MicroSystems, Inc. (ALGM) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook and a positive stock trend [1][9]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Allegro MicroSystems' earnings prospects, reflected in upward revisions of earnings estimates, which typically correlate with stock price movements [2]. - For the current quarter, the earnings estimate is projected at $0.09 per share, marking a year-over-year increase of +200%. The Zacks Consensus Estimate has risen by 11.11% over the last 30 days, with one estimate moving higher and no negative revisions [5]. - For the full year, the expected earnings are $0.53 per share, representing a year-over-year change of +120.83%. The consensus estimate has increased by 10.47% due to one upward revision and no negative changes [6][7]. Zacks Rank - Allegro MicroSystems currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on promising estimate revisions. Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - The stock has gained 18.2% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, suggesting it may be a timely addition to investment portfolios [9].