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Analog Devices (ADI) closed the most recent trading day at $216.99, moving -0.49% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.49%.
The semiconductor maker's stock has climbed by 0.41% in the past month, falling short of the Computer and Technology sector's gain of 5.27% and outpacing the S&P 500's gain of 0.4%.
The investment community will be paying close attention to the earnings performance of Analog Devices in its upcoming release. In that report, analysts expect Analog Devices to post earnings of $1.54 per share. This would mark a year-over-year decline of 10.98%. Meanwhile, our latest consensus estimate is calling for revenue of $2.36 billion, down 6.18% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.11 per share and a revenue of $10.17 billion, signifying shifts of +11.44% and +7.88%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 1.19% lower within the past month. At present, Analog Devices boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 30.68. This indicates a discount in contrast to its industry's Forward P/E of 36.75.
Investors should also note that ADI has a PEG ratio of 2.49 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 average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 2.58 at the close of the market yesterday.