Yahoo Finance Analog Devices (ADI) Gains As Market Dips: What You Should Know
Analog Devices (ADI) closed at $182.79 in the latest trading session, marking a +1.23% move from the prior day. This move outpaced the S&P 500's daily loss of 0.64%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 4.13%.
Heading into today, shares of the semiconductor maker had lost 2.74% over the past month, lagging the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.13% in that time.
Analog Devices will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2023. The company is expected to report EPS of $2.74, up 14.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.2 billion, up 7.6% from the prior-year quarter.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $10.60 per share and revenue of $12.65 billion. These results would represent year-over-year changes of +10.76% and +5.31%, respectively.
It is also important to note the recent changes to analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Analog Devices is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Analog Devices has a Forward P/E ratio of 17.39 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 17.39.
Also, we should mention that ADI has a PEG ratio of 1.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Semiconductor - Analog and Mixed stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 119, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
