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Adeia (ADEA) Rises As Market Takes a Dip: Key Facts

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Adeia (ADEA - Free Report) ended the recent trading session at $10.59, demonstrating a +0.09% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.31%. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.27%.

Shares of the provider of chip technology for small electronic devices witnessed a loss of 6.87% over the previous month, trailing the performance of the Business Services sector with its gain of 1.81% and the S&P 500's gain of 3.05%.

The investment community will be paying close attention to the earnings performance of Adeia in its upcoming release. On that day, Adeia is projected to report earnings of $0.22 per share, which would represent a year-over-year decline of 54.17%. At the same time, our most recent consensus estimate is projecting a revenue of $83.55 million, reflecting a 28.78% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.30 per share and a revenue of $397.7 million, indicating changes of -6.47% and +2.29%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Adeia. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Adeia is currently a Zacks Rank #4 (Sell).

In terms of valuation, Adeia is currently trading at a Forward P/E ratio of 8.14. This denotes a discount relative to the industry's average Forward P/E of 26.88.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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