Analog Devices (ADI) closed the last trading day at $215.32, down 1.23% from the previous trading session. The stock’s performance lagged the S&P 500’s 0.38% gain for the day. Meanwhile, the Dow gained 0.61% and the Nasdaq, a tech-heavy index, gained 0.03%.
Shares of the semiconductor maker fell 10.41 percent month-on-month, lagging behind the computer and technology sector’s 7.5 percent loss and the S&P 500’s 3.2 percent loss.
The investment community will be closely following Analog Devices’ earnings performance in the upcoming release. The company is set to announce its earnings on August 21, 2024. The company is expected to report earnings per share of $1.50, down 39.76% from the year-ago quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.27 billion, down 26.09% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.24 per share and revenue of $9.3 billion, representing changes of -38.16% and -24.4%, respectively, from the prior year.
It is also important for investors to be aware of any recent changes to analyst estimates for Analog Devices. Such recent changes usually indicate a change in near-term business trends. Consequently, upward revisions to estimates reflect analysts’ positive view of the company’s business and its ability to generate earnings.
Our research shows that these estimate revisions are directly related to future stock price movements. To benefit from this, we have developed the Zacks Rank, a unique model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of success. #1-ranked stocks have delivered an average annual return of +25% since 1988. Over the past month, there has been a 0.07% decrease in the Zacks Consensus EPS estimate. Analog Devices currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Analog Devices is currently trading at a P/E ratio of 34.96. The industry average is 38.52, so one could conclude that Analog Devices is trading at a comparative discount.
It is also important to note that ADI is currently trading at a PEG ratio of 3.68. This popular metric is similar to the widely known P/E ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth rate. When the market closed yesterday, the Semiconductors (Analog and Blended) industry had an average PEG ratio of 3.2.
The Semiconductors – Analog and Mixed industry is part of the Computer and Technology sector. This industry, which currently has a Zacks Industry Rank of 239, ranks in the bottom 6% of all 250+ industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by looking at the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to rely on Zacks.com in the following trading sessions to keep track of all these and other metrics that affect the stock.
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Analog Devices, Inc. (ADI): Free Stock Analysis Report
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