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Aehr Test Systems (AEHR) Outpaces Stock Market Gains: What You Should Know

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Aehr Test Systems (AEHR - Free Report) closed at $51.64 in the latest trading session, marking a +1.24% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Prior to today's trading, shares of the company had gained 4.34% over the past month. This has outpaced the Computer and Technology sector's loss of 1.62% and the S&P 500's loss of 1.63% in that time.

Investors will be hoping for strength from Aehr Test Systems as it approaches its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $21.8 million, up 104.31% from the prior-year quarter.

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 +61.64%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Aehr Test Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Aehr Test Systems's current valuation metrics, including its Forward P/E ratio of 48.07. This valuation marks a premium compared to its industry's average Forward P/E of 31.83.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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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