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Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know

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Analog Devices (ADI) closed at $163.12 in the latest trading session, marking a +1.03% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the semiconductor maker had gained 8.83% over the past month. This has outpaced the Computer and Technology sector's loss of 12.83% and the S&P 500's gain of 7.25% in that time.

Wall Street will be looking for positivity from Analog Devices as it approaches its next earnings report date. The company is expected to report EPS of $2.43, up 41.28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 73.85% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.23 per share and revenue of $11.83 billion, which would represent changes of +42.88% and +61.63%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Analog Devices currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Analog Devices has a Forward P/E ratio of 17.48 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.06.

It is also worth noting that ADI currently has a PEG ratio of 1.43. 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.95 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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