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Analog Devices (ADI) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest market close, Analog Devices (ADI - Free Report) reached $218.22, with a +1.66% movement compared to the previous day. This change lagged the S&P 500's 1.83% gain on the day. Meanwhile, the Dow experienced a rise of 1.65%, and the technology-dominated Nasdaq saw an increase of 2.45%.

Shares of the semiconductor maker have appreciated by 0.39% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31%.

The upcoming earnings release of Analog Devices will be of great interest to investors. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $2.36 billion, down 6.18% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $7.09 per share and a revenue of $10.17 billion, demonstrating changes of +11.13% and +7.88%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Analog Devices. These revisions help to show the ever-changing nature 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.47% lower. Analog Devices presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 30.27. This denotes a discount relative to the industry's average Forward P/E of 35.86.

We can also see that ADI currently has a PEG ratio of 2.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADI's industry had an average PEG ratio of 2.59 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 211, this industry ranks in the bottom 16% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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