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Here's Why Analog Devices (ADI) Fell More Than Broader Market
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Analog Devices (ADI - Free Report) closed the most recent trading day at $233.74, moving -1.93% from the previous trading session. This change lagged the S&P 500's 0.88% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 1.95%.
The semiconductor maker's stock has dropped by 0.05% in the past month, falling short of the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%.
Analysts and investors alike will be keeping a close eye on the performance of Analog Devices in its upcoming earnings disclosure. On that day, Analog Devices is projected to report earnings of $1.50 per share, which would represent a year-over-year decline of 39.76%. In the meantime, our current consensus estimate forecasts the revenue to be $2.27 billion, indicating a 26.09% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.24 per share and revenue of $9.31 billion, which would represent changes of -38.16% and -24.34%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% increase. Currently, Analog Devices is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 38.19. This denotes no noticeable deviation relative to the industry's average Forward P/E of 38.19.
We can additionally observe that ADI currently boasts a PEG ratio of 4.02. 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 3.41 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Analog Devices (ADI) Fell More Than Broader Market
Analog Devices (ADI - Free Report) closed the most recent trading day at $233.74, moving -1.93% from the previous trading session. This change lagged the S&P 500's 0.88% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 1.95%.
The semiconductor maker's stock has dropped by 0.05% in the past month, falling short of the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%.
Analysts and investors alike will be keeping a close eye on the performance of Analog Devices in its upcoming earnings disclosure. On that day, Analog Devices is projected to report earnings of $1.50 per share, which would represent a year-over-year decline of 39.76%. In the meantime, our current consensus estimate forecasts the revenue to be $2.27 billion, indicating a 26.09% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.24 per share and revenue of $9.31 billion, which would represent changes of -38.16% and -24.34%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Analog Devices. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% increase. Currently, Analog Devices is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Analog Devices is presently being traded at a Forward P/E ratio of 38.19. This denotes no noticeable deviation relative to the industry's average Forward P/E of 38.19.
We can additionally observe that ADI currently boasts a PEG ratio of 4.02. 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 3.41 at yesterday's closing price.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.