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Analog Devices (ADI) Declines More Than Market: Some Information for Investors
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Analog Devices (ADI - Free Report) closed at $226.64 in the latest trading session, marking a -0.3% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.
The semiconductor maker's stock has dropped by 1.95% in the past month, falling short of the Computer and Technology sector's gain of 0.73% and the S&P 500's gain of 1.95%.
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 $1.63, marking a 18.91% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.41 billion, indicating a 11.4% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.34 per share and revenue of $9.39 billion, indicating changes of -37.17% and -23.69%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% upward. Currently, Analog Devices is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 35.84. This expresses a discount compared to the average Forward P/E of 38.56 of its industry.
Meanwhile, ADI's PEG ratio is currently 3.77. 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 3.67 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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Analog Devices (ADI) Declines More Than Market: Some Information for Investors
Analog Devices (ADI - Free Report) closed at $226.64 in the latest trading session, marking a -0.3% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.
The semiconductor maker's stock has dropped by 1.95% in the past month, falling short of the Computer and Technology sector's gain of 0.73% and the S&P 500's gain of 1.95%.
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 $1.63, marking a 18.91% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.41 billion, indicating a 11.4% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.34 per share and revenue of $9.39 billion, indicating changes of -37.17% and -23.69%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% upward. Currently, Analog Devices is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Analog Devices is currently trading at a Forward P/E ratio of 35.84. This expresses a discount compared to the average Forward P/E of 38.56 of its industry.
Meanwhile, ADI's PEG ratio is currently 3.77. 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. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 3.67 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.