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Adeia (ADEA) Stock Declines While Market Improves: Some Information for Investors

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Adeia (ADEA - Free Report) closed the most recent trading day at $12.13, moving -0.41% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.

Coming into today, shares of the provider of chip technology for small electronic devices had lost 2.87% in the past month. In that same time, the Business Services sector gained 0.84%, while the S&P 500 gained 2.48%.

The upcoming earnings release of Adeia will be of great interest to investors. In that report, analysts expect Adeia to post earnings of $0.26 per share. This would mark a year-over-year decline of 36.59%. Alongside, our most recent consensus estimate is anticipating revenue of $89.23 million, indicating a 13.61% downward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for Adeia. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Adeia boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Adeia is presently trading at a Forward P/E ratio of 8.58. This denotes a discount relative to the industry's average Forward P/E of 24.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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