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Stock impact report

3 Reasons ALGM is Risky and 1 Stock to Buy Instead [Yahoo! Finance]

Allegro MicroSystems, Inc. (ALGM) 
Company Research Source: Yahoo! Finance
The stock has climbed by 17.4% to $25.84 per share while the index has gained 21.1%. Is there a buying opportunity in Allegro MicroSystems, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free for active Edge members Why Is Allegro MicroSystems Not Exciting? We don't have much confidence in Allegro MicroSystems. Here are three reasons why ALGM doesn't excite us and a stock we'd rather own. 1. Long-Term Revenue Growth Disappoints A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Allegro MicroSystems grew its sales at a mediocre 4.4% compounded annual growth rate. This fell short of our benchmark for the semiconductor sector. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. A Show less Read more
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