Why Analog Devices (ADI) Outpaced the Stock Market Today

The most recent trading session ended with Analog Devices (ADI) standing at $215.48, reflecting a +1.95% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 1.26%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.77%.Shares of the semiconductor maker witnessed a loss of 1.49% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.84% and outperforming the S&P 500's loss of 2.82%.The upcoming earnings release of Analog Devices will be of great interest to investors. The company is forecasted to report an EPS of $1.54, showcasing a 10.98% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.36 billion, down 6.18% from the prior-year quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.11 per share and a revenue of $10.17 billion, signifying shifts of +11.44% and +7.88%, respectively, from the last year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.61% lower. At present, Analog Devices boasts a Zacks Rank of #3 (Hold).Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 29.74. This valuation marks a discount compared to its industry's average Forward P/E of 35.75.Investors should also note that ADI has a PEG ratio of 2.42 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Analog and Mixed industry currently had an average PEG ratio of 2.54 as of yesterday's close.The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 24% of all industries, numbering over 250.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks