Analog Devices (ADI) Advances But Underperforms Market: Key Facts
Analog Devices (ADI) closed the most recent trading day at $188.98, moving +1.3% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.41%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 2.2%.
The semiconductor maker's shares have seen an increase of 0.9% over the last month, not keeping up with the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 2.9%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company's earnings per share (EPS) are projected to be $1.71, reflecting a 37.82% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.5 billion, indicating a 23.1% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.99 per share and a revenue of $10.09 billion, representing changes of -30.72% and -18.01%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates 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 company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.75% lower. At present, Analog Devices boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Analog Devices has a Forward P/E ratio of 26.68 right now. This expresses a discount compared to the average Forward P/E of 27.37 of its industry.
Meanwhile, ADI's PEG ratio is currently 2.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 3.42.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 207, placing it within the bottom 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
