Astera Labs, Inc. (ALAB) saw shares drop 16.2% in the past month, underperforming the S&P 500. With the upcoming earnings release, investors are curious if the negative trend will continue or if a breakout is on the horizon. The latest Q3 earnings beat estimates with a 103.9% revenue increase year over year.

Astera Labs is focusing on ramping up production of its PCIe 6 product portfolio for AI systems. The company reported strong demand for its signal conditioning portfolio in custom ASIC platforms. Operating details show a non-GAAP gross margin of 76.4% and a 41.7% non-GAAP operating margin in Q3.

For Q4, Astera Labs expects revenues between $245 million and $253 million, with a non-GAAP gross margin of 75%. Estimates for the stock have been trending upward, with a Zacks Rank #3 (Hold) and a VGM Score of B. Analysts anticipate an in-line return from the stock in the next few months.

Another player in the industry, Meta Platforms (META), reported strong revenue growth of 26.2% in the last quarter. With an expected EPS increase of 1.6% for the current quarter, Meta Platforms has a Zacks Rank #3 (Hold) and a VGM Score of C. The company’s stock has gained 0.6% in the past month.

Zacks’ Research Chief has identified a top stock with potential to at least double in value. With a track record of successful recommendations, this stock is one to watch closely for potential growth opportunities in the market.

Read more at Nasdaq: Why Is Astera Labs, Inc. (ALAB) Down 16.2% Since Last Earnings Report?