Earnings Estimates Rising for Allegro MicroSystems (ALGM): Will It Gain?

Core Insights - Allegro MicroSystems, Inc. (ALGM) shows potential as a strong investment due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9] - Analysts exhibit growing optimism regarding Allegro's earnings prospects, which is expected to positively influence its stock price [2] - The Zacks Rank system, which evaluates stocks based on earnings estimate revisions, indicates that Allegro MicroSystems has a favorable ranking, suggesting strong future performance [3][8] Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.08 per share, reflecting a substantial increase of +166.67% compared to the previous year [5] - The Zacks Consensus Estimate for the current quarter has risen by 100% over the last 30 days, with no negative revisions reported [5] Current-Year Estimate Revisions - For the full year, the earnings estimate stands at $0.50 per share, representing an increase of +108.33% from the prior year [6] - The consensus estimate has seen a boost of 10.26% over the past month, with two estimates moving higher and only one negative revision [6][7] Zacks Rank and Performance - Allegro MicroSystems has achieved a Zacks Rank 2 (Buy), indicating strong potential for outperformance based on earnings estimate revisions [8] - Historical data shows that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500 [8] Stock Performance - The stock has experienced a notable gain of 52.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9]