Allegro MicroSystems (ALGM) Stock: Buy, Sell, or Hold?
ALGM - Allegro MicroSystems, Inc. Common Stock
$36.27
-0.76 (-2.05%)
âŧ
5d:
-0.3%
30d:
+1.2%
90d:
-33.9%
WAIT
LOW Confidence
Analysis Updated: Oct 8, 2026 12:00 AM ET
Earnings: Oct 29, 2026
20d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: ALGM is fairly priced but lacks strong directional signals. At -4.9% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: ALGM is fairly priced but lacks strong directional signals. At -4.9% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$47.04
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$29.21
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ALGM is currently trading at $36.27, which is considered fair relative to its 30-day fair value range of $34.35 to $37.43. From a valuation perspective, the stock is trading at a discount (Forward PE: 37.5) compared to its historical average (43.6). Remarkably, the market is currently pricing in an annual earnings decline of 4.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ALGM is in a strong downtrend. Immediate support is located at $34.95, while resistance sits at $40.03.
Market Sentiment: The stock scores a mixed 44/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $54.42 (+50.0%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, ALGM is in a strong downtrend. Immediate support is located at $34.95, while resistance sits at $40.03.
Market Sentiment: The stock scores a mixed 44/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $54.42 (+50.0%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$34.35 -
$37.43
Company Quality Score
50/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
Protect Your Profits
Holding ALGM? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (44/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 50.0% below Wall St target ($54.42)
- WARNING: Composite score 50/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$34.35 -
$37.43
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$34.95
Resistance Level
$40.03
Current Trend
Strong Downtrend
Technical data as of
Oct 8, 2026
Fundamental Context
Forward P/E (Next Year Est.)
37.54
Wall Street Target
$54.42
(+50.0%)
Revenue Growth (YoY)
27.5%
Earnings Growth (YoY)
-48.5%
Profit Margin
1.5%
Valuation Discount vs History
-4.9% cheaper
PE vs Historical
37.5 vs 43.6
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.9%
(market-implied from PE analysis)
1-Year Target
$34.49
(-5%)
2-Year Target
$32.80
(-10%)
3-Year Target
$31.20
(-14%)
3-Yr Target (if PE normalizes)
(PE: 38â44)
$36.23
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 37.5, Growth: 82.2%)
$122.41
(+238%)
Base:
(SPY PE: 19.7, Growth: 82.2%)
$64.24
(+77%)
Bear:
(PE: 16.7, Growth: 82.2%)
$54.60
(+51%)
đ
Valuation based on Current Earnings
Forward PE: 35.84 | Forward EPS (Implied): $1.01
Bull Case
$43.80
(+21%)
Analyst growth 15.0%, PE expands to 37.6
Base Case
$36.27
(0%)
Market implied 0.0%, PE stable at 35.8
Bear Case
$27.75
(-24%)
Severe decline -15.0%, PE contracts to 32.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 37.5 to 43.6
Stabilization Target:
$42.13
(+16.1%)
PE Expansion Potential:
+16.1%
Share & Embed Analysis
Last updated: October 08, 2026 6:21 PM ET
Data refreshes hourly during market hours. Next update: 7:21 PM
Data refreshes hourly during market hours. Next update: 7:21 PM
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Technical Signals Check
Is ALGM showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced ALGM Option Strategies
Professional options setups generated by AI based on today's ALGM price and gamma walls.
