Analog Devices (ADI) closed at $223.15 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq increased by 0.35%.
Heading into today, shares of the semiconductor maker had lost 9.08% over the past month, lagging the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company plans to announce its earnings on August 20, 2025. The company's earnings per share (EPS) are projected to be $1.93, reflecting a 22.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.76 billion, up 19.18% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.4 per share and revenue of $10.58 billion. These totals would mark changes of +15.99% and +12.21%, respectively, from last 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, 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. Analog Devices is currently a Zacks Rank #3 (Hold).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 29.83. For comparison, its industry has an average Forward P/E of 40.14, which means Analog Devices is trading at a discount to the group.
Investors should also note that ADI has a PEG ratio of 2.03 right now. 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. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.03.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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