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Why Analog Devices (ADI) Dipped More Than Broader Market Today
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Analog Devices (ADI - Free Report) closed the most recent trading day at $194.05, moving -0.5% from the previous trading session. This change lagged the S&P 500's 0.1% loss on the day. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Coming into today, shares of the semiconductor maker had gained 3.54% in the past month. In that same time, the Computer and Technology sector gained 11.35%, while the S&P 500 gained 5.78%.
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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.05 per share and revenue of $10.05 billion. These totals would mark changes of -30.13% and -18.37%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 shifted 0.86% upward. Analog Devices currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 27.65. This expresses a discount compared to the average Forward P/E of 30.21 of its industry.
It's also important to note that ADI currently trades at a PEG ratio of 2.86. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.86.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why Analog Devices (ADI) Dipped More Than Broader Market Today
Analog Devices (ADI - Free Report) closed the most recent trading day at $194.05, moving -0.5% from the previous trading session. This change lagged the S&P 500's 0.1% loss on the day. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Coming into today, shares of the semiconductor maker had gained 3.54% in the past month. In that same time, the Computer and Technology sector gained 11.35%, while the S&P 500 gained 5.78%.
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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.05 per share and revenue of $10.05 billion. These totals would mark changes of -30.13% and -18.37%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 shifted 0.86% upward. Analog Devices currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 27.65. This expresses a discount compared to the average Forward P/E of 30.21 of its industry.
It's also important to note that ADI currently trades at a PEG ratio of 2.86. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.86.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.