Alert: Rating Upgrade (10/4/19)-Applied Optoelectronics Inc (NASDAQ: AAOI).


Stock Rating Upgrade

In recent days the Value Trend Rating for Applied Optoelectronics Inc (NASDAQ: AAOI) improved from D to C reflecting improving fundamentals and high Appreciation Potential.


Recent Price Action

Applied Optoelectronics Inc (NASDAQ: AAOI) stock closed at $10.48 on 10/4/19 after a large increase of 2.6%. However, this advance was accompanied by exceptionally low trading volume at 40% of normal. The stock has declined -6.3% during the last week and has been extremely weak relative to the market over the last nine months.

Current PriceTarget Research Rating

With future capital returns forecasted to be below the cost of capital, AAOI is expected to be a major Value Eraser.

AAOI has a current Value Trend Rating of C (Low Neutral). This VT Rating improved in recent days from D previously. With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. AAOI has a good Appreciation Score of 72 but a poor Power Rating of 18, and the Low Neutral Value Trend Rating results.

About John Lafferty 80532 Articles
During his career, John has developed valuation and stock rating methodologies, managed institutional portfolios and mutual funds, and provided equity research to institutional investors on thousands of companies. He has been Director of Research at PTR since its inception in 2004.

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