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Why Analog Devices (ADI) Dipped More Than Broader Market Today
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Analog Devices (ADI - Free Report) closed at $224.62 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Coming into today, shares of the semiconductor maker had lost 0.15% in the past month. In that same time, the Computer and Technology sector gained 3.5%, while the S&P 500 gained 2.76%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company is predicted to post an EPS of $1.63, indicating a 18.91% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.4 billion, down 11.58% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $6.34 per share and revenue of $9.39 billion. These results would represent year-over-year changes of -37.17% and -23.69%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Analog Devices is currently a Zacks Rank #3 (Hold).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 35.58. This expresses no noticeable deviation compared to the average Forward P/E of 35.58 of its industry.
One should further note that ADI currently holds a PEG ratio of 3.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 3.35 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 31% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Analog Devices (ADI) Dipped More Than Broader Market Today
Analog Devices (ADI - Free Report) closed at $224.62 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Coming into today, shares of the semiconductor maker had lost 0.15% in the past month. In that same time, the Computer and Technology sector gained 3.5%, while the S&P 500 gained 2.76%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company is predicted to post an EPS of $1.63, indicating a 18.91% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.4 billion, down 11.58% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $6.34 per share and revenue of $9.39 billion. These results would represent year-over-year changes of -37.17% and -23.69%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Analog Devices is currently a Zacks Rank #3 (Hold).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 35.58. This expresses no noticeable deviation compared to the average Forward P/E of 35.58 of its industry.
One should further note that ADI currently holds a PEG ratio of 3.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 3.35 at the close of the market yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 31% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.