Analog Devices (ADI) closed at $239.28 in the latest trading session, marking a -2.61% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%.
Prior to today's trading, shares of the semiconductor maker had lost 1.06% lagged the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54%.
Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.22, marking a 32.93% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.01 billion, up 23.24% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.75 per share and a revenue of $10.92 billion, signifying shifts of +21.47% and +15.85%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.83% rise in the Zacks Consensus EPS estimate. At present, Analog Devices boasts a Zacks Rank of #2 (Buy).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 31.69. This expresses a discount compared to the average Forward P/E of 43.15 of its industry.
It is also worth noting that ADI currently has a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 15% of all industries, numbering over 250.
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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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