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In the latest market close, Analog Devices (ADI) reached $197.73, with a -0.43% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.64%. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq lost 0.74%.
Prior to today's trading, shares of the semiconductor maker had gained 20.65% over the past month. This has outpaced the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38% in that time.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is scheduled to release its earnings on May 22, 2025. The company is predicted to post an EPS of $1.69, indicating a 20.71% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, up 15.9% from the year-ago period.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $7.11 per share and revenue of $10.27 billion. These results would represent year-over-year changes of +11.44% and +8.97%, respectively.
It is also important to note the recent changes to analyst estimates for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Analog Devices currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 27.92. For comparison, its industry has an average Forward P/E of 32.71, which means Analog Devices is trading at a discount to the group.
One should further note that ADI currently holds a PEG ratio of 2.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 1.93.