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Analog Devices (ADI) Gains As Market Dips: What You Should Know
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Analog Devices (ADI - Free Report) closed the most recent trading day at $155.50, moving +0.39% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.34%.
Heading into today, shares of the semiconductor maker had gained 6.36% over the past month, outpacing the Computer and Technology sector's gain of 2.77% and the S&P 500's gain of 5.03% in that time.
Analog Devices will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.12, up 37.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, up 71.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.43 per share and revenue of $11.36 billion. These totals would mark changes of +30.5% and +55.28%, respectively, from last year.
Investors should also note any 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.29% higher. Analog Devices currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Analog Devices has a Forward P/E ratio of 18.38 right now. Its industry sports an average Forward P/E of 16.72, so we one might conclude that Analog Devices is trading at a premium comparatively.
Also, we should mention that ADI has a PEG ratio of 1.5. 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 0.9 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Analog Devices (ADI) Gains As Market Dips: What You Should Know
Analog Devices (ADI - Free Report) closed the most recent trading day at $155.50, moving +0.39% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.34%.
Heading into today, shares of the semiconductor maker had gained 6.36% over the past month, outpacing the Computer and Technology sector's gain of 2.77% and the S&P 500's gain of 5.03% in that time.
Analog Devices will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.12, up 37.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, up 71.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.43 per share and revenue of $11.36 billion. These totals would mark changes of +30.5% and +55.28%, respectively, from last year.
Investors should also note any 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.29% higher. Analog Devices currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Analog Devices has a Forward P/E ratio of 18.38 right now. Its industry sports an average Forward P/E of 16.72, so we one might conclude that Analog Devices is trading at a premium comparatively.
Also, we should mention that ADI has a PEG ratio of 1.5. 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 0.9 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.