In the latest trading session, Analog Devices (ADI) closed at $233.75, marking a -3.61% move from the previous day. This change lagged the S&P 500's 0.38% loss on the day. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.
The semiconductor maker's stock has dropped by 2.6% in the past month, falling short of the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is forecasted to report an EPS of $2.22, showcasing a 32.93% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.01 billion, indicating a 23.24% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.75 per share and revenue of $10.92 billion. These totals would mark changes of +21.47% and +15.85%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 0.46% higher. Analog Devices is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 31.28. This denotes a discount relative to the industry average Forward P/E of 41.17.
It is also worth noting that ADI currently has a PEG ratio of 2.04. 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. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.16.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Analog Devices, Inc. (ADI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
