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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 at $179.88 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 4.46%.
Heading into today, shares of the semiconductor maker had lost 8.54% over the past month, lagging the Computer and Technology sector's gain of 2.72% and the S&P 500's gain of 4.04% in that time.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release, which is expected to be May 24, 2023. 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%. Our most recent consensus estimate is calling for quarterly revenue of $3.2 billion, up 7.6% from the year-ago period.
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.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Analog Devices is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.75. For comparison, its industry has an average Forward P/E of 16.75, which means Analog Devices is trading at a no noticeable deviation to the group.
Investors should also note that ADI has a PEG ratio of 1.37 right now. 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 industry currently had an average PEG ratio of 1.37 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 69, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know
Analog Devices (ADI - Free Report) closed at $179.88 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 4.46%.
Heading into today, shares of the semiconductor maker had lost 8.54% over the past month, lagging the Computer and Technology sector's gain of 2.72% and the S&P 500's gain of 4.04% in that time.
Investors will be hoping for strength from Analog Devices as it approaches its next earnings release, which is expected to be May 24, 2023. 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%. Our most recent consensus estimate is calling for quarterly revenue of $3.2 billion, up 7.6% from the year-ago period.
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.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Analog Devices is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Analog Devices currently has a Forward P/E ratio of 16.75. For comparison, its industry has an average Forward P/E of 16.75, which means Analog Devices is trading at a no noticeable deviation to the group.
Investors should also note that ADI has a PEG ratio of 1.37 right now. 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 industry currently had an average PEG ratio of 1.37 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 69, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.