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Here's Why Analog Devices (ADI) Gained But Lagged the Market Today
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The most recent trading session ended with Analog Devices (ADI - Free Report) standing at $164.93, reflecting a +0.65% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
Shares of the semiconductor maker witnessed a loss of 6.59% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.22% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is expected to report EPS of $2.02, down 26.01% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.71 billion, down 16.46% from the prior-year quarter.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Analog Devices is currently sporting a Zacks Rank of #4 (Sell).
In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 16.19. This represents a premium compared to its industry's average Forward P/E of 16.11.
Also, we should mention that ADI has a PEG ratio of 1.67. 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 1.81 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why Analog Devices (ADI) Gained But Lagged the Market Today
The most recent trading session ended with Analog Devices (ADI - Free Report) standing at $164.93, reflecting a +0.65% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
Shares of the semiconductor maker witnessed a loss of 6.59% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.22% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is expected to report EPS of $2.02, down 26.01% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.71 billion, down 16.46% from the prior-year quarter.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Analog Devices is currently sporting a Zacks Rank of #4 (Sell).
In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 16.19. This represents a premium compared to its industry's average Forward P/E of 16.11.
Also, we should mention that ADI has a PEG ratio of 1.67. 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 1.81 based on yesterday's closing prices.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.