In the latest close session, Analog Devices (ADI) was down 2.67% at $380.53. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The semiconductor maker's shares have seen a decrease of 5.67% over the last month, not keeping up with the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
The upcoming earnings release of Analog Devices will be of great interest to investors. It is anticipated that the company will report an EPS of $3.34, marking a 62.93% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.93 billion, reflecting a 36.28% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.43 per share and revenue of $14.58 billion, indicating changes of +59.56% and +32.29%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.89% higher within the past month. Analog Devices is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 31.46. This indicates a discount in contrast to its industry's Forward P/E of 50.87.
It is also worth noting that ADI currently has a PEG ratio of 1.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ADI's industry had an average PEG ratio of 1 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Analog Devices, Inc. (ADI): Free Stock Analysis Report
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