Applied Optoelectronics has rising large players volume. Applied Optoelectronics stock sold off back in October when they came out with another revenue and earnings warning. They were expecting revenue to be 20% less than the expected revenue that they provided during the last guidance.
Today, the sell-off is done and now we have large players once again accumulating Applied Optoelectronics stock.
Applied Optoelectronics issued its quarterly earnings report on November 7, 2017. The company reported EPS of $1.08 versus the $1.31 estimate. Revenue beat coming in at $88.90 million versus the $88.53 million estimate. Applied Optoelectronics’s quarterly revenue was up an impressive 26.8% year-over-year.
Overall there are 3 Sell ratings, 1 Hold rating, 4 Buy ratings, and 2 Strong Buy ratings on Applied Optoelectronics stock. The average price target is $60.75 which represents 34% upside from the current price.
Applied Optoelectronics Inc. is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television (CATV), fiber-to-the-home (FTTH) and telecommunications (telecom). You can read more about the company on their website.
Applied Optoelectronics Stock
The stock is uptrending in a continuation pattern on rising large players volume. The Twiggs Money Flow breaking positive back in mid-November confirmed the end of the downtrend in Applied Optoelectronics stock.
AAOI does present a good setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at $45.31. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $42.98, a stop order could be placed below this zone.
Applied Optoelectronics Inc. Review
AAOI has a Return On Assets of 18.80%. This is amongst the best returns in the industry. The industry average is 3.00%. AAOI outperforms 93% of its industry peers. AAOI has a Return On Equity of 25.42%. This is amongst the best returns in the industry. The industry average is 11.79%. AAOI outperforms 85% of its industry peers. AAOI's Profit Margin of 21.29% is amongst the best returns of the industry. AAOI outperforms 84% of its industry peers. The industry average Profit Margin is 3.40%. The Piotroski-F score of AAOI is 8. This is a very strong score and indicates great health and profitability for AAOI.
With a Price/Earnings Ratio of 10.27, the valuation of AAOI can be described as very reasonable. Compared to an average industry Price/Earning Ratio of 25.72, AAOI is valued rather cheaply. On top of this AAOI is cheaper than 84% of the companies listed in the same industry. The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. Compared to an average industry Enterprise Value to EBITDA ratio of 14.18, AAOI is valued rather cheaply. With a Forward Price/Earnings Ratio of 12.25, AAOI is valued correctly. With a price book ratio of 2.59, AAOI is valued correctly. When comparing the price book ratio of AAOI to the average industry price book ratio of 2.74, AAOI is valued in line with its industry peers.
AAOI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 292.81%, which is quite impressive. Measured over the past 5 years, AAOI shows a very strong growth in Earnings Per Share. The EPS has been growing by 146.46% on average per year. AAOI is expected to show a strong growth in Earnings Per Share. In the coming 2 years, the EPS will grow by 41.69% yearly. Revenue has grown by 69.33% in the past year. This is very strong growth! Revenue has been growing by 43.61% on average over the past 5 years. This is very strong growth! The EPS growth is decreasing: in the next 2 years the growth will be less than in the last years.
AAOI has a Current Ratio of 2.99. This indicates that AAOI is financially healthy and has no problem in meeting its short term obligations. AAOI has a Quick Ratio of 2.02. This indicates that AAOI is financially healthy and has no problem in meeting its short term obligations. AAOI has an Altman-Z score of 6.49. This indicates that AAOI is financially healthy and little risk of bankruptcy at the moment. When comparing the Altman-Z score to an average industry Current Ratio of 3.19, AAOI is in better financial health than the average industry peer. AAOI has a very good Piotroski-F score of 8. This indicates a great health and profitability for AAOI. The Current Ratio is in line with the industry averages, which is at 2.99. AAOI has a Quick Ratio comparable to the industry average, which is at 2.11. The Debt to Equity ratio of AAOI is in line with the industry averages.
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