Analog Devices (ADI) closed at $240.37 in the latest trading session, marking a -1.27% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.4%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq increased by 0.18%.
Prior to today's trading, shares of the semiconductor maker had gained 5.03% lagged the Computer and Technology sector's gain of 6.34% and outpaced the S&P 500's gain of 4.97%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company is predicted to post an EPS of $1.93, indicating a 22.15% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.76 billion, up 19.18% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $7.4 per share and revenue of $10.6 billion. These results would represent year-over-year changes of +15.99% and +12.49%, respectively.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 a 0.16% increase. Analog Devices currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Analog Devices is holding a Forward P/E ratio of 32.9. Its industry sports an average Forward P/E of 39.45, so one might conclude that Analog Devices is trading at a discount comparatively.
Meanwhile, ADI's PEG ratio is currently 2.24. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.21 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 41% of over 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.
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Analog Devices, Inc. (ADI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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