Have you been paying attention to shares of Alpha and Omega Semiconductor (AOSL)? Shares have been on the move with the stock up 49.7% over the past month. The stock hit a new 52-week high of $46.73 in the previous session. Alpha and Omega Semiconductor has gained 75.3% since the start of the year compared to the 26.2% move for the Zacks Computer and Technology sector and the -42% return for the Zacks Electronics - Semiconductors industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2024, Alpha and Omega reported EPS of $-0.04 versus consensus estimate of $-0.14 while it beat the consensus revenue estimate by 0.04%.

For the current fiscal year, Alpha and Omega is expected to post earnings of $0.57 per share on $656 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $1.39 per share on $691 million in revenues. This represents a year-over-year change of -0.86% and 5.34%, respectively.

Valuation Metrics

Alpha and Omega may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Alpha and Omega has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 80.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 38.2X. On a trailing cash flow basis, the stock currently trades at 20.7X versus its peer group's average of 18.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Alpha and Omega currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.