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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 $10.91, moving -0.27% from the previous trading session. This change lagged the S&P 500's 0.57% gain on the day. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.39%.

Prior to today's trading, shares of the provider of chip technology for small electronic devices had lost 9.74% over the past month. This has lagged the Business Services sector's gain of 2.03% and the S&P 500's gain of 2.97% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Adeia in its upcoming earnings disclosure. In that report, analysts expect Adeia to post earnings of $0.22 per share. This would mark a year-over-year decline of 54.17%. Simultaneously, our latest consensus estimate expects the revenue to be $83.55 million, showing a 28.78% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.30 per share and revenue of $397.7 million, indicating changes of -6.47% and +2.29%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Adeia should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.23% lower. Adeia is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, Adeia is currently exchanging hands at a Forward P/E ratio of 8.42. This denotes a discount relative to the industry's average Forward P/E of 25.99.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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