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Why Astera Labs, Inc. (ALAB) Outpaced the Stock Market Today

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Astera Labs, Inc. (ALAB - Free Report) ended the recent trading session at $90.80, demonstrating a +2.52% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 1.02%.

The company's shares have seen a decrease of 6.98% over the last month, not keeping up with the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.

The upcoming earnings release of Astera Labs, Inc. will be of great interest to investors. The company is forecasted to report an EPS of $0.33, showcasing a 153.85% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $172.71 million, up 124.74% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.35 per share and revenue of $702.43 million, indicating changes of +60.71% and +77.25%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Astera Labs, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Astera Labs, Inc. is currently a Zacks Rank #2 (Buy).

Digging into valuation, Astera Labs, Inc. currently has a Forward P/E ratio of 65.45. This denotes a premium relative to the industry average Forward P/E of 28.74.

Meanwhile, ALAB's PEG ratio is currently 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.

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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