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Analog Devices (ADI) Advances While Market Declines: Some Information for Investors

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Analog Devices (ADI - Free Report) closed the most recent trading day at $192.56, moving +0.24% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq lost 0.2%.

The the stock of semiconductor maker has risen by 2.98% in the past month, lagging the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.

The upcoming earnings release of Analog Devices will be of great interest to investors. The company's earnings report is expected on February 21, 2024. The company is predicted to post an EPS of $1.71, indicating a 37.82% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.5 billion, indicating a 23.1% downward movement from the same quarter last year.

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.

Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.5% higher. Analog Devices is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 27.24. This denotes a discount relative to the industry's average Forward P/E of 30.39.

We can also see that ADI currently has a PEG ratio of 2.82. 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 average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.36 at the close of the market yesterday.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 232, finds itself in the bottom 8% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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