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Analog Devices (ADI) Surpasses Market Returns: Some Facts Worth Knowing
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Analog Devices (ADI - Free Report) closed at $405.03 in the latest trading session, marking a +2.1% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.2%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.04%.
The stock of semiconductor maker has risen by 11.53% in the past month, leading the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. On that day, Analog Devices is projected to report earnings of $3.84 per share, which would represent year-over-year growth of 69.91%. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 39.96% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.96 per share and revenue of $15.11 billion, indicating changes of +66.37% and +37.12%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 30.62. This signifies a discount in comparison to the average Forward P/E of 49.69 for its industry.
It's also important to note that ADI currently trades at a PEG ratio of 1.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ADI's industry had an average PEG ratio of 0.73 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.
View the Zacks #1 Rank List
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Analog Devices (ADI) Surpasses Market Returns: Some Facts Worth Knowing
Analog Devices (ADI - Free Report) closed at $405.03 in the latest trading session, marking a +2.1% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.2%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.04%.
The stock of semiconductor maker has risen by 11.53% in the past month, leading the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. On that day, Analog Devices is projected to report earnings of $3.84 per share, which would represent year-over-year growth of 69.91%. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 39.96% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.96 per share and revenue of $15.11 billion, indicating changes of +66.37% and +37.12%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 30.62. This signifies a discount in comparison to the average Forward P/E of 49.69 for its industry.
It's also important to note that ADI currently trades at a PEG ratio of 1.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ADI's industry had an average PEG ratio of 0.73 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.