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Analog Devices (ADI) Surpasses Market Returns: Some Facts Worth Knowing

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The most recent trading session ended with Analog Devices (ADI - Free Report) standing at $227.40, reflecting a +0.43% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.07%.

Shares of the semiconductor maker witnessed a loss of 0.8% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.62% and underperforming the S&P 500's loss of 0.21%.

Investors will be eagerly watching for the performance of Analog Devices in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 21, 2024. The company's earnings per share (EPS) are projected to be $1.50, reflecting a 39.76% decrease from the same quarter last year. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $6.24 per share and a revenue of $9.31 billion, signifying shifts of -38.16% and -24.34%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Analog Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Analog Devices holds a Zacks Rank of #2 (Buy).

Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 36.28. This expresses no noticeable deviation compared to the average Forward P/E of 36.28 of its industry.

It is also worth noting that ADI currently has a PEG ratio of 3.82. 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 industry currently had an average PEG ratio of 3.12 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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