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Analog Devices (ADI) Stock Sinks As Market Gains: Here's Why
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Analog Devices (ADI - Free Report) closed at $204.86 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.98%.
Coming into today, shares of the semiconductor maker had lost 3.37% in the past month. In that same time, the Computer and Technology sector lost 0.79%, while the S&P 500 gained 2.07%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company plans to announce its earnings on February 19, 2025. The company is expected to report EPS of $1.54, down 10.98% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.36 billion, showing a 6.18% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $10.17 billion. These totals would mark changes of +11.13% and +7.88%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Analog Devices is currently a Zacks Rank #4 (Sell).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 28.96. This denotes a discount relative to the industry's average Forward P/E of 33.01.
Investors should also note that ADI has a PEG ratio of 2.35 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.2.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Analog Devices (ADI) Stock Sinks As Market Gains: Here's Why
Analog Devices (ADI - Free Report) closed at $204.86 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.98%.
Coming into today, shares of the semiconductor maker had lost 3.37% in the past month. In that same time, the Computer and Technology sector lost 0.79%, while the S&P 500 gained 2.07%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company plans to announce its earnings on February 19, 2025. The company is expected to report EPS of $1.54, down 10.98% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.36 billion, showing a 6.18% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $10.17 billion. These totals would mark changes of +11.13% and +7.88%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Analog Devices is currently a Zacks Rank #4 (Sell).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 28.96. This denotes a discount relative to the industry's average Forward P/E of 33.01.
Investors should also note that ADI has a PEG ratio of 2.35 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Semiconductor - Analog and Mixed industry was having an average PEG ratio of 2.2.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.