In the latest market close, Analog Devices (ADI) reached $193.72, with a -0.45% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the semiconductor maker had lost 3.46% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% in that time.
The upcoming earnings release of Analog Devices will be of great interest to investors. The company's earnings report is expected on May 22, 2025. On that day, Analog Devices is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 20.71%. Meanwhile, our latest consensus estimate is calling for revenue of $2.5 billion, up 15.9% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.11 per share and a revenue of $10.27 billion, signifying shifts of +11.44% and +8.97%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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 remained unchanged. At present, Analog Devices boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 27.36. For comparison, its industry has an average Forward P/E of 27.36, which means Analog Devices is trading at no noticeable deviation to the group.
It's also important to note that ADI currently trades at a PEG ratio of 2.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ADI's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Analog Devices, Inc. (ADI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
