We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Analog Devices (ADI) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Analog Devices (ADI - Free Report) closed at $139.12, marking a +1.75% move from the previous day. This move lagged the S&P 500's daily gain of 2.65%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Heading into today, shares of the semiconductor maker had lost 8.43% over the past month, outpacing the Computer and Technology sector's loss of 12.03% and the S&P 500's loss of 8.99% in that time.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. In that report, analysts expect Analog Devices to post earnings of $2.58 per share. This would mark year-over-year growth of 49.13%. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 35.18% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $9.43 per share and revenue of $11.93 billion. These results would represent year-over-year changes of +45.98% and +63%, respectively.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Analog Devices currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 14.51. This valuation marks a premium compared to its industry's average Forward P/E of 12.9.
Also, we should mention that ADI has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.69 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 239, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Analog Devices (ADI) Gains But Lags Market: What You Should Know
In the latest trading session, Analog Devices (ADI - Free Report) closed at $139.12, marking a +1.75% move from the previous day. This move lagged the S&P 500's daily gain of 2.65%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Heading into today, shares of the semiconductor maker had lost 8.43% over the past month, outpacing the Computer and Technology sector's loss of 12.03% and the S&P 500's loss of 8.99% in that time.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. In that report, analysts expect Analog Devices to post earnings of $2.58 per share. This would mark year-over-year growth of 49.13%. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 35.18% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $9.43 per share and revenue of $11.93 billion. These results would represent year-over-year changes of +45.98% and +63%, respectively.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Analog Devices currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 14.51. This valuation marks a premium compared to its industry's average Forward P/E of 12.9.
Also, we should mention that ADI has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 0.69 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 239, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.