ALGM Stock Analysis: Buy, Sell, or Hold?
ALGM - Allegro MicroSystems, Inc. Common Stock
$53.11
2.78 (5.52%)
▲
5d:
+8.39%
30d:
+7.34%
90d:
+55.88%
BUY
MODERATE Confidence
Analysis Updated: Jun 3, 2026 12:00 AM ET
Earnings: Jul 30, 2026
Smart Money Accumulation
None View Scanner →
Strength: 5.5/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: ALGM shows positive signals but monitor for confirmation. Market pricing in 9.5% growth. Moderate conviction.
💡 BUY OPPORTUNITY: ALGM shows positive signals but monitor for confirmation. Market pricing in 9.5% growth. Moderate conviction.
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 $53.11, which is considered extended relative to its 30-day fair value range of $43.78 to $50.24. From a valuation perspective, the stock is trading at a premium (Forward PE: 55.0) compared to its historical average (41.9). At these levels, the market is pricing in 9.5% annual earnings growth.
Technical Outlook: Technically, ALGM is in a strong uptrend. The price is approaching resistance at $53.28. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 5.5% recently.
Market Sentiment: ALGM has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, ALGM is in a strong uptrend. The price is approaching resistance at $53.28. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 5.5% recently.
Market Sentiment: ALGM has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$43.78 -
$50.24
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range (+5.7% above its trading range)
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+5.5%)
- NEUTRAL: Near Wall St target ($54.42)
- BULLISH: Expecting earnings turnaround to 9.5% growth with 26.1% revenue growth
Trading Range Analysis
30-Day Trading Range
$43.78 -
$50.24
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$41.25
Resistance Level
$53.28
Current Trend
Strong Uptrend
Technical data as of
Jun 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
54.97
Wall Street Target
$54.42
(+2.5%)
Revenue Growth (YoY)
26.1%
Earnings Growth (YoY)
-48.5%
Profit Margin
-1.7%
Valuation Premium vs History
+9.5% premium
PE vs Historical
55.0 vs 41.9
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+9.5%
(market-implied from PE analysis)
1-Year Target
$58.16
(+10%)
2-Year Target
$63.68
(+20%)
3-Year Target
$69.73
(+31%)
3-Yr Target (if PE normalizes)
(PE: 55→42)
PE COMPRESSION
$53.15
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 55.0, Growth: 82.2%)
$179.25
(+238%)
Base:
(SPY PE: 21.9, Growth: 82.2%)
$71.45
(+35%)
Bear:
(PE: 18.6, Growth: 82.2%)
$60.73
(+14%)
Share & Embed Analysis
Last updated: June 03, 2026 5:01 PM ET
Data refreshes hourly during market hours. Next update: 6:01 PM
Data refreshes hourly during market hours. Next update: 6:01 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.
