Yahoo Finance Analog Devices (ADI) Falls More Steeply Than Broader Market: What Investors Need to Know
Analog Devices (ADI) closed at $201.31 in the latest trading session, marking a -1.74% move from the prior day. This move lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 1.05%.
Heading into today, shares of the semiconductor maker had lost 11.69% over the past month, outpacing the Computer and Technology sector's loss of 12.91% and lagging the S&P 500's loss of 5.85% in that time.
The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company is scheduled to release its earnings 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. Alongside, our most recent consensus estimate is anticipating revenue of $2.27 billion, indicating a 26.09% downward movement from the same quarter last year.
ADI's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $9.3 billion. These results would represent year-over-year changes of -38.16% and -24.4%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Analog Devices presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 32.85. This expresses no noticeable deviation compared to the average Forward P/E of 32.85 of its industry.
One should further note that ADI currently holds a PEG ratio of 3.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Semiconductor - Analog and Mixed industry had an average PEG ratio of 3.02.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 238, finds itself in the bottom 6% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
