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Adeia (ADEA) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Adeia (ADEA - Free Report) ended the recent trading session at $12.27, demonstrating a -1.37% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.

The the stock of provider of chip technology for small electronic devices has risen by 31.36% in the past month, leading the Business Services sector's gain of 0.94% and the S&P 500's gain of 2.56%.

Market participants will be closely following the financial results of Adeia in its upcoming release. On that day, Adeia is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 36.59%. Meanwhile, the latest consensus estimate predicts the revenue to be $89.23 million, indicating a 13.61% decrease compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Adeia. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Adeia boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Adeia has a Forward P/E ratio of 8.76 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.92.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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