Analog Devices (ADI) closed at $238.15 in the latest trading session, marking a +1.17% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.66%.
The stock of semiconductor maker has fallen by 3.56% in the past month, lagging the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.02%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company's upcoming EPS is projected at $2.22, signifying a 32.93% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.01 billion, reflecting a 23.24% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.75 per share and a revenue of $10.95 billion, demonstrating changes of +21.47% and +16.2%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Analog Devices is holding a Zacks Rank of #1 (Strong Buy) right now.
From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 30.37. This signifies a discount in comparison to the average Forward P/E of 40.85 for its industry.
Investors should also note that ADI has a PEG ratio of 1.98 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. ADI's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
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.
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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