Prior to today's trading, shares of the semiconductor maker had lost 16.39% lagged the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
The upcoming earnings release of Analog Devices will be of great interest to investors. The company is expected to report EPS of $3.33, up 62.44% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.92 billion, indicating a 36.25% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.42 per share and revenue of $14.55 billion, indicating changes of +59.44% and +32.03%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.85% upward. At present, Analog Devices boasts a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 29.98. This indicates a discount in contrast to its industry's Forward P/E of 47.35.
It is also worth noting that ADI currently has a PEG ratio of 1.04. 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 had an average PEG ratio of 0.96 as trading concluded yesterday.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 17, finds itself in the top 7% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.