Analog Devices (ADI) closed the most recent trading day at $422.73, moving +1.49% from the previous trading session. This change outpaced the S&P 500's 0.19% gain on the day. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.1%.
The semiconductor maker's stock has climbed by 18.96% in the past month, falling short of the Computer and Technology sector's gain of 19.09% and outpacing the S&P 500's gain of 9.13%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is scheduled to release its earnings on May 20, 2026. In that report, analysts expect Analog Devices to post earnings of $2.88 per share. This would mark year-over-year growth of 55.68%. At the same time, our most recent consensus estimate is projecting a revenue of $3.51 billion, reflecting a 32.99% rise from the equivalent quarter last year.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $11.35 per share and revenue of $13.91 billion. These results would represent year-over-year changes of +45.7% and +26.26%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.19% higher within the past month. Analog Devices currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 36.7. This denotes a discount relative to the industry average Forward P/E of 55.37.
One should further note that ADI currently holds a PEG ratio of 1.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.39 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Analog Devices, Inc. (ADI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).