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Analog Devices, Inc. (ADI) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Analog Devices (ADI - Free Report) ? Shares have been on the move with the stock up 20.1% over the past month. The stock hit a new 52-week high of $416 in the previous session. Analog Devices has gained 53.3% since the start of the year compared to the 15% move for the Zacks Computer and Technology sector and the 62.4% return for the Zacks Semiconductor - Analog and Mixed industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 18, 2026, Analog Devices reported EPS of $2.46 versus consensus estimate of $2.3 while it beat the consensus revenue estimate by 1.36%.
For the current fiscal year, Analog Devices is expected to post earnings of $11.35 per share on $13.91 in revenues. This represents a 45.7% change in EPS on a 26.26% change in revenues. For the next fiscal year, the company is expected to earn $12.54 per share on $15.16 in revenues. This represents a year-over-year change of 10.51% and 8.98%, respectively.
Valuation Metrics
While Analog Devices has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Analog Devices has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 36.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 54.2X. On a trailing cash flow basis, the stock currently trades at 34.7X versus its peer group's average of 47.3X. Additionally, the stock has a PEG ratio of 1.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Analog Devices currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Analog Devices passes the test. Thus, it seems as though Analog Devices shares could have a bit more room to run in the near term.
How Does ADI Stack Up to the Competition?
Shares of ADI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NXP Semiconductors N.V. (NXPI - Free Report) . NXPI has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. NXP Semiconductors N.V. beat our consensus estimate by 2.35%, and for the current fiscal year, NXPI is expected to post earnings of $14.71 per share on revenue of $13.94 billion.
Shares of NXP Semiconductors N.V. have gained 48.6% over the past month, and currently trade at a forward P/E of 20.64X and a P/CF of 22.29X.
The Semiconductor - Analog and Mixed industry is in the top 8% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ADI and NXPI, even beyond their own solid fundamental situation.
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Analog Devices, Inc. (ADI) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Analog Devices (ADI - Free Report) ? Shares have been on the move with the stock up 20.1% over the past month. The stock hit a new 52-week high of $416 in the previous session. Analog Devices has gained 53.3% since the start of the year compared to the 15% move for the Zacks Computer and Technology sector and the 62.4% return for the Zacks Semiconductor - Analog and Mixed industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 18, 2026, Analog Devices reported EPS of $2.46 versus consensus estimate of $2.3 while it beat the consensus revenue estimate by 1.36%.
For the current fiscal year, Analog Devices is expected to post earnings of $11.35 per share on $13.91 in revenues. This represents a 45.7% change in EPS on a 26.26% change in revenues. For the next fiscal year, the company is expected to earn $12.54 per share on $15.16 in revenues. This represents a year-over-year change of 10.51% and 8.98%, respectively.
Valuation Metrics
While Analog Devices has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Analog Devices has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 36.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 54.2X. On a trailing cash flow basis, the stock currently trades at 34.7X versus its peer group's average of 47.3X. Additionally, the stock has a PEG ratio of 1.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Analog Devices currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Analog Devices passes the test. Thus, it seems as though Analog Devices shares could have a bit more room to run in the near term.
How Does ADI Stack Up to the Competition?
Shares of ADI have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NXP Semiconductors N.V. (NXPI - Free Report) . NXPI has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. NXP Semiconductors N.V. beat our consensus estimate by 2.35%, and for the current fiscal year, NXPI is expected to post earnings of $14.71 per share on revenue of $13.94 billion.
Shares of NXP Semiconductors N.V. have gained 48.6% over the past month, and currently trade at a forward P/E of 20.64X and a P/CF of 22.29X.
The Semiconductor - Analog and Mixed industry is in the top 8% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ADI and NXPI, even beyond their own solid fundamental situation.