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Applied Optoelectronics, Inc. (AAOI) Stock Analysis

SellModerate Confidence

Technology · Communication Equipment

Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China. The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers,... Read more

$113.28+12.1% upside
Score 4.9/10Target $126.38Reward/Risk 0.2:1

TrendMatrix rates Applied Optoelectronics, Inc. (AAOI) as Sell with moderate confidence. The stock trades at $113.28 with +12.1% upside to the $126.38 price target. Overall score: 4.9/10 across 10 analysis dimensions. Reward/risk ratio: 0.2:1.

Passes 2/4 gates (positive momentum, clean insider activity). Fails on favorable risk/reward ratio. Suitability: aggressive.

Val3.2Qual2.8Grw10.0Mom5.2Sent4.8Ins4.6Peer3.7Tech4.8Risk4.14.9OVERALL

Investment Thesis

- V8: Target reached (-31.9% upside)
- Quality below floor (2.8 < 4.0)

Fundamentals

P/E (TTM)
P/E (Fwd)35.4
Mkt Cap$8.8B
EV/EBITDA-269.2
Profit Mgn-8.4%
ROE-7.9%
Rev Growth33.9%
Beta3.27
DividendNone
Analysts13
Frequently Asked Questions
Is AAOI stock a buy right now?

TrendMatrix rates Applied Optoelectronics, Inc. (AAOI) as Sell with moderate confidence. Score 4.9/10.

What is the AAOI stock price target?

Take-profit target: $126.38 (+12.1% upside). Reward/risk ratio: 0.2:1. Stop-loss: $51.26.

What are the risks of investing in AAOI?

V8: Target reached (-31.9% upside); Quality below floor (2.8 < 4.0).

Is AAOI overvalued or undervalued?

Applied Optoelectronics, Inc. trades at a P/E of N/A (forward 35.4). TrendMatrix value score: 3.2/10. Verdict: Sell.

What do analysts say about AAOI?

13 analysts cover AAOI with a consensus score of 3.8/5. Average price target: $90.

What does Applied Optoelectronics, Inc. do?Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the...

Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China. The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers. It sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.

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54 NEUTRAL
20d50d200dGOLDEN CROSSSupp $52.85Res $128.96

Price Targets

$51
$126
Upside+12.1%
Reward/Risk0.2:1

Position Sizing

ConvictionNONE
Suggested %0.5%
Max %1%
RegimeNEUTRAL

Risk Alerts

! V8: Target reached (-31.9% upside)
! Quality below floor (2.8 < 4.0)
! ASYMMETRY:-0.6=NEGATIVE
Suitability: Aggressive
Momentum 5.2>=5.0
Insider activity: OK
Executive change: officer departure/appointment
Risk/Reward -0.6=NEGATIVE