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Analog Devices (ADI) Gains As Market Dips: What You Should Know
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In the latest trading session, Analog Devices (ADI - Free Report) closed at $164.03, marking a +0.03% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Heading into today, shares of the semiconductor maker had lost 4.37% over the past month, lagging the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% in that time.
Wall Street will be looking for positivity from Analog Devices as it approaches its next earnings report date. On that day, Analog Devices is projected to report earnings of $2.59 per share, which would represent year-over-year growth of 33.51%. Our most recent consensus estimate is calling for quarterly revenue 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 typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.6% lower. Analog Devices is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.84. This valuation marks a premium compared to its industry's average Forward P/E of 14.37.
Investors should also note that ADI has a PEG ratio of 1.37 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Analog Devices (ADI) Gains As Market Dips: What You Should Know
In the latest trading session, Analog Devices (ADI - Free Report) closed at $164.03, marking a +0.03% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Heading into today, shares of the semiconductor maker had lost 4.37% over the past month, lagging the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% in that time.
Wall Street will be looking for positivity from Analog Devices as it approaches its next earnings report date. On that day, Analog Devices is projected to report earnings of $2.59 per share, which would represent year-over-year growth of 33.51%. Our most recent consensus estimate is calling for quarterly revenue 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 typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.6% lower. Analog Devices is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.84. This valuation marks a premium compared to its industry's average Forward P/E of 14.37.
Investors should also note that ADI has a PEG ratio of 1.37 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.