In the latest close session, Analog Devices (ADI) was up +1.38% at $245.15. This change outpaced the S&P 500's 0.07% loss on the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
The stock of semiconductor maker has risen by 6.22% in the past month, leading the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is forecasted to report an EPS of $1.92, showcasing a 21.52% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.76 billion, indicating a 19.18% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.39 per share and revenue of $10.6 billion. These totals would mark changes of +15.83% and +12.49%, respectively, from last year.
Investors might also notice recent changes to analyst estimates 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 business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Analog Devices is currently a Zacks Rank #3 (Hold).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 32.73. This expresses a discount compared to the average Forward P/E of 39.86 of its industry.
It's also important to note that ADI currently trades at a PEG ratio of 2.23. 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 2.24 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons of all 250+ industries.
Story continuesThe 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.
To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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