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Analog Devices to Boost Production, Combat Coronavirus Crisis

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Analog Devices Inc. (ADI - Free Report) recently announced its decision to significantly boost the production of healthcare technologies in a bid to combat the coronavirus pandemic.

These healthcare technologies like critical measurement and control technologies are used in the manufacture of medical equipment components like ventilators, respirators, diagnostic test systems, infusion pumps, among others, which are used for diagnostics and treatment for COVID-19 patients.

In order to ensure the supply and expedite shipments of healthcare products, the company is making all efforts tohelp the manufacturers of critical medical equipment. In addition, it is taking adequate care about the health and safety of the manufacturing teams by providing protective equipment, social distancing guidelines, and ensuring clean workplace practices.

Analog Devices, Inc. Price and Consensus

 

Coronavirus Pandemic a Likely Headwind

The coronavirus outbreak is spreading at an alarming rate. The pandemic has infected more than 600,000 people worldwide and claimed more than 29,000 lives.

This pandemic is expected to have disrupted Analog Devices’ supply chain.

Notably, the company recently withdrew its second-quarter 2020 guidance due to uncertainty of the outbreak’s impact on the upcoming results.

However, amid market disruptions and related uncertainties, Analog Devices’ focus on solutions namely, battery management and automotive bodes well. Additionally, rising adoption of advanced radio systems in 5G infrastructures is driving growth in the company’s communication business. Furthermore, solid momentum of the HEV platform across cabin electronics ecosystem is a tailwind.

In a bid to combat the coronavirus pandemic, the firm has also partnered with customers and healthcare organizations to make use of the best healthcare diagnostics solutions for the betterment of employees. In addition, the company is taking all necessary steps to protect the safety, health and well-being of employees, customers, dealers, suppliers and communities.

Zacks Rank & Stocks to Consider

Analog Devices currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader technology sector include Stamps.com Inc. , eBay Inc. (EBAY - Free Report) and Atlassian Corp. (TEAM - Free Report) . While Stamps.com and eBay sport a Zacks Rank #1 (Strong Buy), Atlassian carries a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth for Stamps.com, Atlassian Corp. and eBay is currently projected at 15%, 22.3% and 11.56%, respectively.

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