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Why Analog Devices (ADI) Outpaced the Stock Market Today
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In the latest trading session, Analog Devices (ADI - Free Report) closed at $209.65, marking a +1.6% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.6%.
Prior to today's trading, shares of the semiconductor maker had lost 9.63% over the past month. This has lagged the Computer and Technology sector's gain of 0.59% and the S&P 500's gain of 1.06% 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 November 26, 2024. On that day, Analog Devices is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 18.91%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 11.58% downward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Analog Devices is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 27.49. This signifies a discount in comparison to the average Forward P/E of 36.59 for its industry.
Also, we should mention that ADI has a PEG ratio of 2.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 3.1 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Analog Devices (ADI) Outpaced the Stock Market Today
In the latest trading session, Analog Devices (ADI - Free Report) closed at $209.65, marking a +1.6% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.39%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.6%.
Prior to today's trading, shares of the semiconductor maker had lost 9.63% over the past month. This has lagged the Computer and Technology sector's gain of 0.59% and the S&P 500's gain of 1.06% 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 November 26, 2024. On that day, Analog Devices is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 18.91%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 11.58% downward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. Analog Devices is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 27.49. This signifies a discount in comparison to the average Forward P/E of 36.59 for its industry.
Also, we should mention that ADI has a PEG ratio of 2.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 3.1 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.