Stock Rating Downgrade
Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for Applied Optoelectronics Inc (NASDAQ: AAOI) weakened during the last several trading days. AAOI’s current Value Trend Rating is D and the prior Rating was C. Details supporting this lower rating are included in our next report.
Recent Price Action
Applied Optoelectronics Inc (NASDAQ: AAOI) stock closed at $12.40 on 5/20/24 after a very large increase of 5.8%. This advance was accompanied by normal trading volume. Relative to the market the stock has been strong over the last nine months and has risen 21.3% during the last week.
Current PriceTarget Research Rating
AAOI’s future returns on capital are forecasted to exceed the cost of capital. Accordingly, the company is expected to be an important Value Builder.
Applied Optoelectronics has a current Value Trend Rating of D (Negative). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing contradictory signals. Applied Optoelectronics has a poor Appreciation Score of 20 but a slightly positive Power Rating of 66, resulting in the Negative Value Trend Rating.
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