Analog Devices (ADI) closed at $302.10 in the latest trading session, marking a +1.38% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.
The semiconductor maker's stock has climbed by 9.94% in the past month, exceeding the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. On that day, Analog Devices is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 40.49%. Simultaneously, our latest consensus estimate expects the revenue to be $3.11 billion, showing a 28.21% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.92 per share and a revenue of $12.82 billion, signifying shifts of +27.34% and +16.36%, respectively, from the last year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 1.81% rise in the Zacks Consensus EPS estimate. Right now, Analog Devices possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 30.05. This indicates a discount in contrast to its industry's Forward P/E of 43.75.
Meanwhile, ADI's PEG ratio is currently 1.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.39.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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