In the latest trading session, Analog Devices (ADI) closed at $243.29, marking a +1.22% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
Heading into today, shares of the semiconductor maker had lost 3.32% over the past month, lagging the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. In that report, analysts expect Analog Devices to post earnings of $2.22 per share. This would mark year-over-year growth of 32.93%. Meanwhile, our latest consensus estimate is calling for revenue of $3.01 billion, up 23.24% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for Analog Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 31.01. This expresses a discount compared to the average Forward P/E of 39.3 of its industry.
Investors should also note that ADI has a PEG ratio of 2.03 right now. 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. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.09 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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