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Analog Devices (ADI) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Analog Devices (ADI - Free Report) closed at $154.47, marking a -1.56% move from the previous day. This move lagged the S&P 500's daily loss of 0.68%.

Coming into today, shares of the semiconductor maker had gained 5% in the past month. In that same time, the Computer and Technology sector gained 9.54%, while the S&P 500 gained 6.62%.

Investors will be hoping for strength from ADI as it approaches its next earnings release. In that report, analysts expect ADI to post earnings of $1.45 per share. This would mark year-over-year growth of 34.26%. Our most recent consensus estimate is calling for quarterly revenue of $1.6 billion, up 21.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.01 per share and revenue of $6.49 billion. These totals would mark changes of +22.4% and +15.83%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ADI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. ADI is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ADI has a Forward P/E ratio of 26.53 right now. This represents a discount compared to its industry's average Forward P/E of 30.05.

Meanwhile, ADI's PEG ratio is currently 2.17. 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 1.37 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 103, which puts it in the top 41% 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.

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