In the latest close session, Analog Devices (ADI) was down 2.07% at $235.50. This move lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Shares of the semiconductor maker witnessed a gain of 4.11% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.6%, and the S&P 500's gain of 5.88%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is expected to report EPS of $1.93, up 22.15% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.76 billion, reflecting a 19.18% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.4 per share and revenue of $10.6 billion, which would represent changes of +15.99% and +12.49%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Right now, Analog Devices possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 32.5. This valuation marks a discount compared to its industry average Forward P/E of 40.59.
We can also see that ADI currently has a PEG ratio of 2.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ADI's industry 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. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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