Yahoo Finance Analog Devices (ADI) Outpaces Stock Market Gains: What You Should Know
Analog Devices (ADI) closed at $181.43 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.45% gain on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 35%.
Heading into today, shares of the semiconductor maker had lost 5.17% over the past month, lagging the Computer and Technology sector's gain of 0.17% and the S&P 500's gain of 0.44% 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. On that day, Analog Devices is projected to report earnings of $2.74 per share, which would represent year-over-year growth of 14.17%. Our most recent consensus estimate is calling for quarterly revenue of $3.2 billion, up 7.6% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.60 per share and revenue of $12.65 billion. These totals would mark changes of +10.76% and +5.31%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Analog Devices is currently a Zacks Rank #3 (Hold).
Investors should also note Analog Devices's current valuation metrics, including its Forward P/E ratio of 16.94. For comparison, its industry has an average Forward P/E of 16.94, which means Analog Devices is trading at a no noticeable deviation to the group.
It is also worth noting that ADI currently has a PEG ratio of 1.38. 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. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 1.38 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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
