Analog Devices (ADI) ended the recent trading session at $237.65, demonstrating a +2.42% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 1.04%, and the Nasdaq, a tech-heavy index, added 0.14%.
Shares of the semiconductor maker witnessed a loss of 3.49% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.64%, and the S&P 500's gain of 3.08%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company is slated to reveal its earnings on August 20, 2025. On that day, Analog Devices is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 22.15%. Our most recent consensus estimate is calling for quarterly revenue of $2.76 billion, up 19.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.4 per share and a revenue of $10.58 billion, signifying shifts of +15.99% and +12.21%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Analog Devices is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Analog Devices is holding a Forward P/E ratio of 31.36. This signifies a discount in comparison to the average Forward P/E of 36.2 for its industry.
Also, we should mention that ADI has a PEG ratio of 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 32, this industry ranks in the top 13% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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