Investors often feel forced to pick between companies that are dependable, with steady returns but fewer opportunities for growth, and those that have strong growth potential but run the risk of volatility. Though rare, there are some firms that exist at the intersection of both stability and potential for returns.
Here is how Allegro MicroSystems, Inc. (ALGM) and Fortinet (FTNT) have performed compared to their sector so far this year.
Allegro sees AI data center demand surge, with expanding design wins, backlog growth and content opportunities in electrification and automation.
Allegro beats Q1'27 estimates as record Data Center sales, stronger bookings and margin gains drive 27.5% revenue growth and a robust Q2 outlook.
Allegro MicroSystems, Inc. (ALGM) Q1 2027 Earnings Call Transcript
Allegro MicroSystems NASDAQ: ALGM reported first-quarter fiscal 2027 sales of $259 million, exceeding the high end of its guidance range and rising 7% sequentially and 27% from a year earlier. Non-GAAP earnings per share reached $0.23, up 35% sequentially and 156% year over year, as the company cited operating leverage, product mix and early contributions from pricing actions.
Allegro MicroSystems, Inc. (ALGM) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.09 per share a year ago.
Allegro MicroSystems ALGM is scheduled to report first-quarter fiscal 2027 results on July 30, 2026, after market close.
Allegro's revenue rebound, earnings leverage and margin recovery bolster the bull case, but a richer valuation leaves less room for execution missteps.
ALGM is gaining from rising chip content in smarter vehicles, AI data centers and robotics, while margin gains could support earnings growth.
ALGM's growth story now spans EVs, AI data centers and robotics, but margins, auto exposure and execution remain key to the stock.
Allegro MicroSystems (ALGM) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.