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Analog Devices (ADI) Laps the Stock Market: Here's Why
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Analog Devices (ADI - Free Report) ended the recent trading session at $173.79, demonstrating a +1.33% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
The semiconductor maker's shares have seen a decrease of 5.53% over the last month, surpassing the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 6.19%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company is predicted to post an EPS of $2.02, indicating a 26.01% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.71 billion, indicating a 16.46% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.12 per share and a revenue of $12.3 billion, indicating changes of +5.75% and +2.4%, respectively, from the former year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, there's been a 0.27% fall in the Zacks Consensus EPS estimate. Analog Devices currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 16.94. This expresses a discount compared to the average Forward P/E of 17.47 of its industry.
We can additionally observe that ADI currently boasts a PEG ratio of 1.75. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 1.93.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Analog Devices (ADI) Laps the Stock Market: Here's Why
Analog Devices (ADI - Free Report) ended the recent trading session at $173.79, demonstrating a +1.33% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
The semiconductor maker's shares have seen a decrease of 5.53% over the last month, surpassing the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 6.19%.
Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company is predicted to post an EPS of $2.02, indicating a 26.01% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.71 billion, indicating a 16.46% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.12 per share and a revenue of $12.3 billion, indicating changes of +5.75% and +2.4%, respectively, from the former year.
Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, there's been a 0.27% fall in the Zacks Consensus EPS estimate. Analog Devices currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 16.94. This expresses a discount compared to the average Forward P/E of 17.47 of its industry.
We can additionally observe that ADI currently boasts a PEG ratio of 1.75. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 1.93.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.