Analog Devices (ADI) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Analog Devices (ADI) reached $198.30, with a -1.52% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.36%.
Shares of the semiconductor maker witnessed a gain of 1.26% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.29% and the S&P 500's gain of 2.4%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company is forecasted to report an EPS of $1.71, showcasing a 37.82% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.5 billion, showing a 23.1% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.99 per share and a revenue of $10.05 billion, signifying shifts of -30.72% and -18.36%, respectively, from the last year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.35% decrease. Right now, Analog Devices possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 28.8. This expresses a discount compared to the average Forward P/E of 29.53 of its industry.
It's also important to note that ADI currently trades at a PEG ratio of 2.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 3.83 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 20% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
