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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 $147.27, marking a -0.82% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.
Coming into today, shares of the semiconductor maker had lost 11.82% in the past month. In that same time, the Computer and Technology sector lost 7.26%, while the S&P 500 lost 7.99%.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. In that report, analysts expect Analog Devices to post earnings of $2.42 per share. This would mark year-over-year growth of 40.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.07. For comparison, its industry has an average Forward P/E of 16.15, which means Analog Devices is trading at a discount to the group.
Meanwhile, ADI's PEG ratio is currently 1.31. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 0.86 at yesterday's closing price.
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 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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Analog Devices (ADI) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Analog Devices (ADI - Free Report) closed at $147.27, marking a -0.82% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.
Coming into today, shares of the semiconductor maker had lost 11.82% in the past month. In that same time, the Computer and Technology sector lost 7.26%, while the S&P 500 lost 7.99%.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. In that report, analysts expect Analog Devices to post earnings of $2.42 per share. This would mark year-over-year growth of 40.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.07. For comparison, its industry has an average Forward P/E of 16.15, which means Analog Devices is trading at a discount to the group.
Meanwhile, ADI's PEG ratio is currently 1.31. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 0.86 at yesterday's closing price.
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 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.