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Analog Devices (ADI) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw Analog Devices (ADI - Free Report) ending at $194.74, denoting a -1.25% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.76%.
The the stock of semiconductor maker has fallen by 0.68% in the past month, lagging the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company's upcoming EPS is projected at $1.71, signifying a 37.82% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.5 billion, down 23.1% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.05 per share and a revenue of $10.05 billion, indicating changes of -30.13% and -18.37%, respectively, from the former year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.5% upward. Analog Devices is currently a Zacks Rank #4 (Sell).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 27.96. Its industry sports an average Forward P/E of 28.11, so one might conclude that Analog Devices is trading at a discount comparatively.
It is also worth noting that ADI currently has a PEG ratio of 2.89. 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. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.89.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 222, positioning it in the bottom 12% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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Analog Devices (ADI) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw Analog Devices (ADI - Free Report) ending at $194.74, denoting a -1.25% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.76%.
The the stock of semiconductor maker has fallen by 0.68% in the past month, lagging the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company's upcoming EPS is projected at $1.71, signifying a 37.82% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.5 billion, down 23.1% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.05 per share and a revenue of $10.05 billion, indicating changes of -30.13% and -18.37%, respectively, from the former year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.5% upward. Analog Devices is currently a Zacks Rank #4 (Sell).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 27.96. Its industry sports an average Forward P/E of 28.11, so one might conclude that Analog Devices is trading at a discount comparatively.
It is also worth noting that ADI currently has a PEG ratio of 2.89. 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. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.89.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 222, positioning it in the bottom 12% 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.