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Analog Devices (ADI) Stock Sinks As Market Gains: What You Should Know
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Analog Devices (ADI - Free Report) closed at $145.54 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.
Prior to today's trading, shares of the semiconductor maker had lost 9.04% over the past month. This has lagged the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. The company is expected to report EPS of $2.42, up 40.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 73.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.24 per share and revenue of $11.82 billion, which would represent changes of +43.03% and +61.57%, respectively, from the prior year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Analog Devices is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 15.98. Its industry sports an average Forward P/E of 16.02, so we one might conclude that Analog Devices is trading at a discount comparatively.
Also, we should mention that ADI has a PEG ratio of 1.3. 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. ADI's industry had an average PEG ratio of 0.85 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 20, which puts it in the top 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Analog Devices (ADI) Stock Sinks As Market Gains: What You Should Know
Analog Devices (ADI - Free Report) closed at $145.54 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.
Prior to today's trading, shares of the semiconductor maker had lost 9.04% over the past month. This has lagged the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. The company is expected to report EPS of $2.42, up 40.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 73.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.24 per share and revenue of $11.82 billion, which would represent changes of +43.03% and +61.57%, respectively, from the prior year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Analog Devices is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 15.98. Its industry sports an average Forward P/E of 16.02, so we one might conclude that Analog Devices is trading at a discount comparatively.
Also, we should mention that ADI has a PEG ratio of 1.3. 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. ADI's industry had an average PEG ratio of 0.85 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 20, which puts it in the top 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.