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In the latest trading session, Analog Devices (ADI) closed at $150.84, marking a +0.03% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.87%.
Prior to today's trading, shares of the semiconductor maker had lost 5.6% over the past month. This has lagged the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 1.61% in that time.
Wall Street will be looking for positivity from ADI as it approaches its next earnings report date. This is expected to be May 19, 2021. On that day, ADI is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 34.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.6 billion, up 21.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.01 per share and revenue of $6.49 billion. These totals would mark changes of +22.4% and +15.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ADI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ADI is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ADI currently has a Forward P/E ratio of 25.08. This represents a discount compared to its industry's average Forward P/E of 25.99.
Also, we should mention that ADI has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
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