Analog Devices (ADI) Declines More Than Market: Some Information for Investors
Analog Devices (ADI) closed the latest trading day at $170.66, indicating a -0.96% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.08%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.22%.
The the stock of semiconductor maker has risen by 0.73% in the past month, lagging the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.
The upcoming earnings release of Analog Devices will be of great interest to investors. The company's earnings report is expected on November 21, 2023. In that report, analysts expect Analog Devices to post earnings of $2.02 per share. This would mark a year-over-year decline of 26.01%. At the same time, our most recent consensus estimate is projecting a revenue of $2.71 billion, reflecting a 16.46% fall from the equivalent quarter last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Currently, Analog Devices is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 20.67. This valuation marks a premium compared to its industry's average Forward P/E of 17.84.
One should further note that ADI currently holds a PEG ratio of 2.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.3.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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
