ALGM Stock Analysis & Forecast (2026)

Allegro MicroSystems, Inc. Technology Semiconductors
$37.25
Current Price
59%
Hold
View Plans
Data refreshed: April 16, 2026

Key Financial Metrics

Market Cap
$6.90B
P/E Forward
38.6x
Revenue Growth
28.9%
Gross Margin
45.1%
Net Margin
-1.6%
Return on Equity
-1.4%
Debt/Equity
0.32

AI Analysis Summary

Allegro MicroSystems, Inc. (ALGM) is a Technology company in the Semiconductors industry with a 59% Hold Score. Key strengths include Revenue Growth (28.9%), Gross Margin (45.1%). Areas to watch: Net Margin (-1.6%), Return on Equity (-1.4%). Our AI evaluates 8 fundamental categories including revenue growth, margin quality, balance sheet strength, cash flow generation, return on capital, and valuation metrics.

Revenue Growth: Strong Gross Margin: Good Net Margin: Negative Return on Equity: Negative Debt/Equity: Moderate

This analysis is generated by StrongBuyAnalytics AI using publicly available financial data from SEC filings, earnings reports, and market feeds. It is not personalized investment advice. See our methodology and disclaimer.

ALGM Fundamental Analysis Report
PDF Report Preview
59%
Strong Buy Score
  • 8 Fundamental Categories Analyzed
  • Revenue & Growth Trends
  • Margin & Profitability Analysis
  • Balance Sheet Strength
  • Cash Flow Quality
  • Valuation Assessment
  • AI-Powered Investment Insights
Get Your Free ALGM Report

How It Works: AI Stock Analysis in 60 Seconds

See how our AI analyzes ALGM fundamentals to generate buy/sell signals and Strong Buy Scores.

Why ALGM Has a 59% Score

Our AI evaluates Allegro MicroSystems, Inc.'s fundamentals across multiple dimensions. Here is what is driving the current Hold rating:

Recent Catalysts for ALGM

Key developments and data points that may impact Allegro MicroSystems, Inc.'s trajectory:

Wall Street consensus target is $46.08 (+23.7% from current price), based on 12 analyst estimates.
Analyst consensus recommendation: None.
Institutional ownership at 74.8% — strong smart-money backing.

ALGM vs. Peers

How Allegro MicroSystems, Inc. stacks up against comparable Technology companies on key metrics:

Ticker Price Market Cap P/E Rev Growth Net Margin ROE
ALGM $37.25 $6.90B 28.9% -1.6% -1.4%
AAPL $266.43 $3.92T 33.7x 15.7% 27.0% 152.0%
MSFT $411.22 $3.06T 25.7x 16.7% 39.0% 34.4%
GOOGL $337.12 $4.08T 31.2x 18.0% 32.8% 35.7%
META $671.58 $1.70T 28.6x 23.8% 30.1% 30.2%

Main Risks for ALGM Investors

Every investment carries risk. Here are the specific risk factors our analysis identified for Allegro MicroSystems, Inc.:

Net Margin (-1.6%)
Return on Equity (-1.4%)
High beta of 1.70 means the stock is 70% more volatile than the market — expect larger drawdowns in corrections.
Short interest is elevated with a 4.9-day cover ratio, indicating bearish bets against the stock.

Generate the full PDF report for a detailed risk-reward framework and bear-case scenarios.

ALGM Balance Sheet & Cash Flow

A snapshot of Allegro MicroSystems, Inc.'s financial health based on the most recent filings:

Total Cash
$155.19M
Total Debt
$308.19M
Current Ratio
3.65
FCF Yield
1.6%
EBITDA
$72.11M
Operating Margin
4.2%

Data sourced from the latest SEC filings. Generate the full PDF report for detailed balance sheet and cash flow commentary.

ALGM Valuation Snapshot

Forward P/E
38.6x
Price / Book
7.2x
Premium
Analyst Target (Mean)
$46.08
Range: $44 – $51
52-Week Price Range — ALGM is trading at 76% of its range
$16.38 (52W Low) $43.86 (52W High)

Is ALGM a Buy Right Now?

Based on our AI-powered fundamental analysis, ALGM has a Strong Buy Score of 59%, earning a "Hold" rating. This score synthesizes 8 key financial metrics to provide an objective investment signal.

Moderate Buy Signal

Allegro MicroSystems, Inc. shows mixed fundamentals with some strengths and areas to monitor. Positives include Revenue Growth (28.9%). Watch for Net Margin (-1.6%).

ALGM AI Buy & Sell Signals Explained

Our AI analyzes Allegro MicroSystems, Inc.'s financial statements to generate buy/sell signals based on quantitative metrics, not market sentiment or news headlines. Here's what drives the 59% score:

  • Revenue Growth: 28.9% year-over-year (above average)
  • Gross Margin: 45.1% (strong pricing power)
  • Net Margin: -1.6% (unprofitable)
  • Return on Equity: -1.4% (negative returns)

Generate the full PDF report for complete category-by-category scoring and AI-powered investment recommendations.

Key Support / Demand Zones

Technical traders can view real-time demand and supply zones for ALGM on our Demand Zones page. These zones identify key price levels where institutional buying or selling has historically occurred.

With ALGM currently trading at $37.25, our system monitors proximity to these critical levels and can alert you when the stock approaches support or resistance zones.

Subscribe to demand zone alerts to receive real-time notifications when ALGM reaches key technical levels.

Earnings & Revenue Outlook

Allegro MicroSystems, Inc. operates in the Technology sector, specifically in Semiconductors. Understanding earnings trends is crucial for forecasting ALGM's trajectory.

Current revenue growth of 28.9% significantly outpaces the average company. This strong growth trajectory supports a higher valuation multiple.

Visit our Earnings Calendar to track upcoming ALGM earnings dates and historical beat/miss patterns. Sign up for earnings alerts to get notified before announcements.

ALGM Stock Forecast (Next 3–12 Months)

Our AI projects ALGM's trajectory based on current fundamentals and historical patterns. With a 59% Strong Buy Score, here's what the data suggests:

Mixed Outlook: Allegro MicroSystems, Inc. shows moderate fundamental strength. Revenue growth at 28.9% is positive but warrants monitoring. The stock may trade sideways or experience modest gains depending on execution and market conditions.

For a complete 12-month price forecast with specific bull/bear scenarios, generate the full PDF report.

Valuation Metrics (P/E, Growth, Margins)

Understanding valuation is critical for determining if ALGM is fairly priced. Here's the current snapshot:

  • Market Capitalization: $6.90B
  • Forward P/E: 38.6x (based on analyst estimates)
  • Debt/Equity: 0.32 (conservative balance sheet)

Our AI weighs these metrics against growth rates and margin quality to determine if ALGM offers compelling risk-adjusted returns at current prices.

Bull Case for ALGM

Here's why investors are bullish on Allegro MicroSystems, Inc.:

  • Revenue Growth (28.9%)
  • Gross Margin (45.1%)

While these positives exist, investors should weigh them against the risks outlined in the bear case below.

Bear Case & Risks for ALGM

Every investment carries risk. Here are potential concerns for ALGM investors:

  • Net Margin (-1.6%)
  • Return on Equity (-1.4%)

The full PDF report includes a detailed bear case analysis with specific risk ratings for each category.

Summary / 12-Month Outlook

ALGM Summary: Allegro MicroSystems, Inc. earns a 59% Hold Score based on AI analysis of fundamental data. Trading at $37.25 with a $6.90B market cap, the stock presents a balanced risk/reward profile for the coming year.

Bull Case: Revenue Growth (28.9%), Gross Margin (45.1%)

Watch: Net Margin (-1.6%), Return on Equity (-1.4%)

For the complete analysis with specific price considerations, growth projections, and AI-powered buy/hold/sell recommendations, generate your free ALGM PDF report.

Learn More About Stock Analysis

Deepen your understanding of the concepts used in this ALGM analysis:

Fundamental Analysis Guide

Learn how to evaluate stocks using financial statements and key metrics.

Understanding P/E Ratio

What P/E ratio tells you about a stock's valuation and growth expectations.

Return on Equity (ROE)

Why ROE matters for stock selection and how to interpret it.

Stock Valuation Methods

Compare DCF, P/E, and other approaches to value stocks like ALGM.

What Are Demand Zones?

Find key support and resistance levels for ALGM and other stocks.

How to Read Earnings Reports

Understand earnings per share, revenue surprises, and guidance.

Related Tools for ALGM

Demand Zone Analyzer ALGM Live Chart Earnings Calendar Institutional Ownership Sector Scanner Average Down Calculator

Frequently Asked Questions about ALGM

Is ALGM a good buy right now?
ALGM currently has a Strong Buy Score of 59% (Hold). ALGM shows moderate buy signals. The stock has mixed fundamentals worth reviewing in detail. Generate a free PDF report for specific buy/hold/sell recommendations.
What is the ALGM stock forecast for 2026?
Our AI forecasts ALGM based on current fundamentals: revenue growth of 28.9%, net margin of -1.6%. The 59% Strong Buy Score reflects our outlook combining growth trajectory, margin quality, and valuation. See the full 12-month projection in your PDF report.
What are key support and resistance levels for ALGM?
View real-time ALGM demand zones (support) and supply zones (resistance) on our Demand Zones page. With ALGM currently at $37.25, you can see how close the stock is to key technical levels. Subscribe to get alerts when ALGM approaches these zones.
How do ALGM fundamentals compare to peers?
Allegro MicroSystems, Inc. operates in the Technology sector. Key metrics for peer comparison: Gross margin 45.1%, ROE -1.4%, Debt/Equity 0.32. The 59% Strong Buy Score factors in how these metrics stack up against industry averages. Data is refreshed daily.
Is the ALGM analysis PDF report free?
Yes! Your first ALGM fundamental analysis report is completely free with no credit card required. The PDF includes the full Strong Buy Score breakdown, all 8 fundamental categories analyzed, AI-powered insights, and specific investment recommendations. Additional reports are available through our subscription plans starting at $24/month.
What is Allegro MicroSystems, Inc.'s market cap and P/E ratio?
Allegro MicroSystems, Inc. (ALGM) has a market cap of $6.90B (forward P/E: 38.6x). These valuation metrics are key factors in our Strong Buy Score calculation. See all metrics in the PDF report for comprehensive valuation analysis.

This ALGM analysis is for educational and informational purposes only and does not constitute financial advice. All data is sourced from public filings and market feeds. Past performance does not guarantee future results. Read our full disclaimer.