The most recent trading session ended with Analog Devices (ADI) standing at $219.55, reflecting a -0.42% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.29% loss on the day. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 0.09%.
Shares of the semiconductor maker have depreciated by 6.75% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.2% and the S&P 500's gain of 3.3%.
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 November 26, 2024. It is anticipated that the company will report an EPS of $1.63, marking a 18.91% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.4 billion, down 11.58% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Analog Devices presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 29.37. This represents a discount compared to its industry's average Forward P/E of 41.41.
Investors should also note that ADI has a PEG ratio of 3.09 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. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 3.43 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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