Analog Devices (ADI) closed the latest trading day at $215.42, indicating a -0.9% change from the previous session's end. This change was narrower than the S&P 500's 1.46% loss on the day. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, lost 3.07%.

The semiconductor maker's stock has climbed by 0.18% in the past month, falling short of the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 1.08%.

Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company plans to announce its earnings on February 19, 2025. It is anticipated that the company will report an EPS of $1.54, marking a 10.98% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.36 billion, indicating a 6.18% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.09 per share and a revenue of $10.17 billion, signifying shifts of +11.13% and +7.88%, respectively, from the last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.3% fall in the Zacks Consensus EPS estimate. Analog Devices is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 30.68. This represents a discount compared to its industry's average Forward P/E of 40.22.

One should further note that ADI currently holds a PEG ratio of 2.49. 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 was holding an average PEG ratio of 2.63 at yesterday's closing price.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 17% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Analog Devices, Inc. (ADI) : Free Stock Analysis Report

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