In the latest trading session, Analog Devices (ADI) closed at $310.92, marking a -2.44% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.43% for the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.94%.
The semiconductor maker's stock has climbed by 17.51% in the past month, exceeding the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 0.89%.
The upcoming earnings release of Analog Devices will be of great interest to investors. The company's earnings report is expected on February 18, 2026. The company's upcoming EPS is projected at $2.31, signifying a 41.72% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.12 billion, indicating a 28.67% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.01 per share and revenue of $12.89 billion, indicating changes of +28.5% and +16.93%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 2.29% higher. Currently, Analog Devices is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 31.83. This signifies a discount in comparison to the average Forward P/E of 48.35 for its industry.
One should further note that ADI currently holds a PEG ratio of 1.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.57 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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