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Why Analog Devices (ADI) Outpaced the Stock Market Today

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Analog Devices (ADI - Free Report) closed at $230.77 in the latest trading session, marking a +1.29% move from the prior day. This move outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.33%.

Prior to today's trading, shares of the semiconductor maker had lost 3.86% lagged the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.

The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. The company is slated to reveal its earnings on August 20, 2025. It is anticipated that the company will report an EPS of $1.93, marking a 22.15% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.76 billion, reflecting a 19.18% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.4 per share and a revenue of $10.6 billion, signifying shifts of +15.99% and +12.49%, respectively, from the last year.

Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. As of now, Analog Devices holds a Zacks Rank of #3 (Hold).

In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 30.79. This indicates a discount in contrast to its industry's Forward P/E of 39.75.

Investors should also note that ADI has a PEG ratio of 2.1 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. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 2.13.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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