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Allegro MicroSystems Shares Show Heavy Demand

By:
Lucas Downey
Published: Feb 1, 2023, 14:00 GMT+00:00

Allegro MicroSystems (ALGM) stock has climbed 27% in January. And the semiconductor firm could jump more due a favorable earnings report released January 31st. But another likely reason is heavy demand lifting the shares.

Nasdaq, FX Empire

In this article:

Allegro MicroSystems Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Allegro MicroSystems has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

Since November, the shares attracted 13 unusual buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the fundamental action grabbing my attention:

Allegro MicroSystems Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, ALGM has been growing sales and EPS at a healthy clip. Take a look:

  • 1-year sales growth rate (+30%)
  • 3-year EPS growth rate (+152.2%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, ALGM has been a top-rated stock at my research firm, MAPsignals, recently. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

Let’s wrap up.

Allegro MicroSystems Price Prediction

The Allegro MicroSystems rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside.

Disclosure: the author holds no positions in ALGM at the time of publication.

Learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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