Understanding the Basics of Applied Optoelectronics for Stock Investors

By Harris Dyer • Wednesday, August 23 12:04 • Permanent Link

We're taking a closer look at Applied Optoelectronics today, as the chatter surrounding the stock has increased notably in the last few weeks. Today, its shares moved -0.5% compared to 1.0% for the S&P 500. Increased investor interest and volatility surrounding the stock are not reason enough to buy in -- you should first perform your own due diligence. Here are some figures that can get you started:

Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide.
Applied Optoelectronics has moved 458.0% over the last year compared to 8.0% for the S&P 500 -- a difference of 450.0%
AAOI has an average analyst rating of buy and is 28.35% away from its mean target price of $12.0 per share
Its trailing 12 month earnings per share (EPS) is $-2.37
Applied Optoelectronics has a trailing 12 month Price to Earnings (P/E) ratio of -6.5 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $0.4 and its forward P/E ratio is 38.5
AAOI has a Price to Earnings Growth (PEG) ratio of -1.91, which shows the company is fairly valued compared to its earnings.
The company has a Price to Book (P/B) ratio of 3.0 in contrast to the S&P 500's average ratio of 2.95
Applied Optoelectronics is part of the Technology sector, which has an average P/E ratio of 27.16 and an average P/B of 6.23
Applied Optoelectronics has on average reported free cash flows of $38.09 Million over the last four years, during which time they have grown by an an average of -0.0%

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.