In the latest trading session, Analog Devices (ADI) closed at $240.36, marking a -2.44% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.93%.
Prior to today's trading, shares of the semiconductor maker had lost 0.17% lagged the Computer and Technology sector's gain of 1.25% and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company is expected to report EPS of $2.22, up 32.93% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.01 billion, indicating a 23.24% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.75 per share and a revenue of $10.95 billion, indicating changes of +21.47% and +16.2%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Analog Devices holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 31.78. For comparison, its industry has an average Forward P/E of 40.88, which means Analog Devices is trading at a discount to the group.
Meanwhile, ADI's PEG ratio is currently 2.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.14 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
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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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