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Analog Devices (ADI) Gains But Lags Market: What You Should Know
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Analog Devices (ADI - Free Report) closed at $163.84 in the latest trading session, marking a +0.05% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the semiconductor maker had lost 3.22% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.33% in that time.
Wall Street will be looking for positivity from Analog Devices as it approaches its next earnings report date. In that report, analysts expect Analog Devices to post earnings of $2.59 per share. This would mark year-over-year growth of 33.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.15 billion, up 17.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.74 per share and revenue of $12.14 billion, which would represent changes of +1.78% and +1.09%, respectively, from the prior year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.84% higher. Analog Devices is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.81. For comparison, its industry has an average Forward P/E of 14.29, which means Analog Devices is trading at a premium to the group.
Meanwhile, ADI's PEG ratio is currently 1.37. 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. ADI's industry had an average PEG ratio of 0.72 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% 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.
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Analog Devices (ADI) Gains But Lags Market: What You Should Know
Analog Devices (ADI - Free Report) closed at $163.84 in the latest trading session, marking a +0.05% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the semiconductor maker had lost 3.22% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.38% and the S&P 500's loss of 4.33% in that time.
Wall Street will be looking for positivity from Analog Devices as it approaches its next earnings report date. In that report, analysts expect Analog Devices to post earnings of $2.59 per share. This would mark year-over-year growth of 33.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.15 billion, up 17.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.74 per share and revenue of $12.14 billion, which would represent changes of +1.78% and +1.09%, respectively, from the prior year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.84% higher. Analog Devices is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.81. For comparison, its industry has an average Forward P/E of 14.29, which means Analog Devices is trading at a premium to the group.
Meanwhile, ADI's PEG ratio is currently 1.37. 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. ADI's industry had an average PEG ratio of 0.72 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% 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.