In the latest trading session, Analog Devices (ADI) closed at $379.03, marking a -2.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
The semiconductor maker's shares have seen a decrease of 3.73% over the last month, not keeping up with the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. On that day, Analog Devices is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 62.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.93 billion, indicating a 36.28% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.41 per share and a revenue of $14.58 billion, indicating changes of +59.31% and +32.29%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Analog Devices possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 31.33. This expresses a discount compared to the average Forward P/E of 52.25 of its industry.
Meanwhile, ADI's PEG ratio is currently 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 1.01.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Analog Devices, Inc. (ADI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).