In the latest market close, Analog Devices (ADI) reached $221.45, with a +1.04% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.88% for the day. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.
The semiconductor maker's shares have seen an increase of 1.99% over the last month, surpassing the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17%.
Analysts and investors alike will be keeping a close eye on the performance of Analog Devices in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.54, marking a 10.98% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.36 billion, indicating a 6.18% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.09 per share and a revenue of $10.17 billion, indicating changes of +11.13% and +7.88%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Analog Devices presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 30.91. This signifies a discount in comparison to the average Forward P/E of 37.1 for its industry.
Investors should also note that ADI has a PEG ratio of 2.51 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.65.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 210, finds itself in the bottom 17% echelons 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.
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