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The most recent trading session ended with Analog Devices (ADI) standing at $215.48, reflecting a +1.95% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 1.26%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.77%.
Shares of the semiconductor maker witnessed a loss of 1.49% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.84% and outperforming the S&P 500's loss of 2.82%.
The upcoming earnings release of Analog Devices will be of great interest to investors. The company is forecasted to report an EPS of $1.54, showcasing a 10.98% downward movement from the corresponding quarter of the prior year. 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. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 moved 0.61% lower. At present, Analog Devices boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 29.74. This valuation marks a discount compared to its industry's average Forward P/E of 35.75.
Investors should also note that ADI has a PEG ratio of 2.42 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 2.54 as of yesterday's close.