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Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know

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Analog Devices (ADI - Free Report) closed the most recent trading day at $167.66, moving +0.37% from the previous trading session. This change outpaced the S&P 500's 0.33% gain on the day.

Heading into today, shares of the semiconductor maker had gained 2.35% over the past month, lagging the Computer and Technology sector's gain of 6.03% and outpacing the S&P 500's gain of 1.74% in that time.

Wall Street will be looking for positivity from ADI as it approaches its next earnings report date. In that report, analysts expect ADI to post earnings of $1.61 per share. This would mark year-over-year growth of 18.38%. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 17.06% from the year-ago period.

ADI's full-year Zacks Consensus Estimates are calling for earnings of $6.28 per share and revenue of $6.66 billion. These results would represent year-over-year changes of +27.9% and +18.78%, respectively.

It is also important to note the recent changes to analyst estimates for ADI. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 0.1% higher. ADI is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that ADI has a Forward P/E ratio of 26.61 right now. Its industry sports an average Forward P/E of 26.61, so we one might conclude that ADI is trading at a no noticeable deviation comparatively.

Meanwhile, ADI's PEG ratio is currently 2.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.12 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 25, which puts it in the top 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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