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Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Analog Devices (ADI - Free Report) closed at $151.04, marking a +1.42% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the semiconductor maker had gained 5.7% over the past month, outpacing the Computer and Technology sector's loss of 1.71% and the S&P 500's gain of 4.72% in that time.
Analog Devices will be looking to display strength as it nears its next earnings release, which is expected to be November 22, 2022. The company is expected to report EPS of $2.58, up 49.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 35.18% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% lower. Analog Devices is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 15.84. This represents a premium compared to its industry's average Forward P/E of 14.15.
Also, we should mention that ADI has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 0.69 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Analog Devices (ADI - Free Report) closed at $151.04, marking a +1.42% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the semiconductor maker had gained 5.7% over the past month, outpacing the Computer and Technology sector's loss of 1.71% and the S&P 500's gain of 4.72% in that time.
Analog Devices will be looking to display strength as it nears its next earnings release, which is expected to be November 22, 2022. The company is expected to report EPS of $2.58, up 49.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 35.18% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% lower. Analog Devices is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 15.84. This represents a premium compared to its industry's average Forward P/E of 14.15.
Also, we should mention that ADI has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 0.69 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.