Analog Devices (ADI) ended the recent trading session at $237.33, demonstrating a +1.13% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%.
Shares of the semiconductor maker witnessed a gain of 8.84% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.5%, and the S&P 500's gain of 5.12%.
Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.92, indicating a 21.52% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.76 billion, up 19.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.39 per share and a revenue of $10.6 billion, signifying shifts of +15.83% and +12.49%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Analog Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 past month, the Zacks Consensus EPS estimate has moved 0.55% higher. Analog Devices currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 31.77. This valuation marks a discount compared to its industry average Forward P/E of 40.18.
It's also important to note that ADI currently trades at a PEG ratio of 2.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ADI's industry had an average PEG ratio of 2.18 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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
