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Analog Devices (ADI) Gains But Lags Market: What You Should Know
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Analog Devices (ADI - Free Report) closed at $189.10 in the latest trading session, marking a +0.97% move from the prior day. This move lagged the S&P 500's daily gain of 1.33%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 2.94%.
Coming into today, shares of the semiconductor maker had gained 2.38% in the past month. In that same time, the Computer and Technology sector gained 8.77%, while the S&P 500 gained 6.11%.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. On that day, Analog Devices is projected to report earnings of $2.74 per share, which would represent year-over-year growth of 14.17%. Meanwhile, our latest consensus estimate is calling for revenue of $3.2 billion, up 7.6% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $10.60 per share and revenue of $12.65 billion. These results would represent year-over-year changes of +10.76% and +5.31%, respectively.
It is also important to note the recent changes to analyst estimates for Analog Devices. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Analog Devices currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 17.67. For comparison, its industry has an average Forward P/E of 17.67, which means Analog Devices is trading at a no noticeable deviation to the group.
Meanwhile, ADI's PEG ratio is currently 1.44. 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 1.44 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 38, which puts it in the top 16% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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Analog Devices (ADI) Gains But Lags Market: What You Should Know
Analog Devices (ADI - Free Report) closed at $189.10 in the latest trading session, marking a +0.97% move from the prior day. This move lagged the S&P 500's daily gain of 1.33%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 2.94%.
Coming into today, shares of the semiconductor maker had gained 2.38% in the past month. In that same time, the Computer and Technology sector gained 8.77%, while the S&P 500 gained 6.11%.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release. On that day, Analog Devices is projected to report earnings of $2.74 per share, which would represent year-over-year growth of 14.17%. Meanwhile, our latest consensus estimate is calling for revenue of $3.2 billion, up 7.6% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $10.60 per share and revenue of $12.65 billion. These results would represent year-over-year changes of +10.76% and +5.31%, respectively.
It is also important to note the recent changes to analyst estimates for Analog Devices. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Analog Devices currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 17.67. For comparison, its industry has an average Forward P/E of 17.67, which means Analog Devices is trading at a no noticeable deviation to the group.
Meanwhile, ADI's PEG ratio is currently 1.44. 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 1.44 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 38, which puts it in the top 16% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.