Analog Devices (ADI) Stock Falls Amid Market Uptick: What Investors Need to Know
Analog Devices (ADI) closed at $167.57 in the latest trading session, marking a -0.21% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.3%.
Heading into today, shares of the semiconductor maker had lost 3.48% over the past month, lagging the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 3.08% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Analog Devices in its upcoming earnings disclosure. The company's earnings report is set to go public on November 21, 2023. It is anticipated that the company will report an EPS of $2.02, marking a 26.01% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.71 billion, showing a 16.46% drop compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. At present, Analog Devices boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 20.14. This represents a premium compared to its industry's average Forward P/E of 17.75.
Also, we should mention that ADI has a PEG ratio of 2.08. 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 was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 19% of all 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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 Report
