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Here's Why Analog Devices (ADI) Fell More Than Broader Market
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In the latest close session, Analog Devices (ADI - Free Report) was down 2.49% at $410.08. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.22%.
Shares of the semiconductor maker have appreciated by 15.79% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.54%, and the S&P 500's gain of 1.4%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.84, reflecting a 69.91% increase from the same quarter last year. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.96 per share and a revenue of $15.11 billion, indicating changes of +66.37% and +37.12%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 remained unchanged. Analog Devices is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 32.46. This valuation marks a discount compared to its industry average Forward P/E of 42.83.
We can also see that ADI currently has a PEG ratio of 1.3. 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 of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 0.75.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Here's Why Analog Devices (ADI) Fell More Than Broader Market
In the latest close session, Analog Devices (ADI - Free Report) was down 2.49% at $410.08. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.22%.
Shares of the semiconductor maker have appreciated by 15.79% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.54%, and the S&P 500's gain of 1.4%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.84, reflecting a 69.91% increase from the same quarter last year. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.96 per share and a revenue of $15.11 billion, indicating changes of +66.37% and +37.12%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 remained unchanged. Analog Devices is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 32.46. This valuation marks a discount compared to its industry average Forward P/E of 42.83.
We can also see that ADI currently has a PEG ratio of 1.3. 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 of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 0.75.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.