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Adeia (ADEA) Declines More Than Market: Some Information for Investors

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Adeia (ADEA - Free Report) closed the latest trading day at $10.65, indicating a -1.39% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.72%. Elsewhere, the Dow saw a downswing of 1%, while the tech-heavy Nasdaq depreciated by 0.95%.

Shares of the provider of chip technology for small electronic devices have depreciated by 6.82% over the course of the past month, underperforming the Business Services sector's loss of 0.92% and the S&P 500's gain of 2.16%.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $83.55 million, down 28.78% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.30 per share and revenue of $397.7 million. These totals would mark changes of -6.47% and +2.29%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Adeia. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Adeia is carrying a Zacks Rank of #4 (Sell).

With respect to valuation, Adeia is currently being traded at a Forward P/E ratio of 8.31. This represents a discount compared to its industry's average Forward P/E of 26.63.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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