In the latest trading session, Aehr Test Systems (AEHR) closed at $35.68, marking a +1.65% move from the previous day. This change outpaced the S&P 500’s 1.38% loss on the day. Meanwhile, the Dow lost 1.26%, and the Nasdaq, a tech-heavy index, lost 5.67%.

Heading into today, shares of the company had gained 21.75% over the past month, outpacing the Computer and Technology sector’s gain of 9.94% and the S&P 500’s gain of 3.87% in that time.

Investors will be hoping for strength from Aehr Test Systems as it approaches its next earnings release. On that day, Aehr Test Systems is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $17 million, up 11.26% from the year-ago period.

AEHR’s full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $66.1 million. These results would represent year-over-year changes of +45.24% and +30.04%, respectively.

Investors might also notice recent changes to analyst estimates for Aehr Test Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Aehr Test Systems is currently a Zacks Rank #2 (Buy).

Digging into valuation, Aehr Test Systems currently has a Forward P/E ratio of 57.54. For comparison, its industry has an average Forward P/E of 16.53, which means Aehr Test Systems is trading at a premium to the group.

The Electronics – Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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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