Analog Devices Shows Decline in Comparison to Broader Markets

Analog Devices

Analog Devices (NASDAQ:ADI) concluded the most recent trading session at $175.49, experiencing a decrease of -0.95% from the preceding day’s closing. This shift fell short of the S&P 500’s daily decrease of 0.77%. Concurrently, the Dow exhibited a decrease of 0.84%, while the technology-focused Nasdaq saw a decline of 1.17%.

Before today’s trading, the semiconductor manufacturer’s shares had incurred a loss of 9.51% over the past month. During the same period, the Computer and Technology sector experienced a reduction of 4.78%, while the S&P 500 underwent a decline of 2.13%.

As the upcoming earnings report date of Analog Devices on August 23, 2023, approaches, investors on Wall Street will be anticipating positive outcomes. In the forthcoming report, analysts project that Analog Devices will disclose earnings of $2.53 per share, reflecting a modest year-over-year growth of 0.4%. On the other hand, the latest consensus estimate predicts revenue of $3.09 billion, indicating a decrease of 0.53% compared to the same quarter in the previous year.

For the entirety of the fiscal year,  Zacks Consensus Estimates suggest potential earnings of $10.55 per share and revenue amounting to $12.6 billion. These figures translate to changes of +10.24% and +4.85%, respectively, compared to the previous year.

Investors should take note of any recent adjustments in analyst estimates for Analog Devices, as these changes often reflect the latest short-term trends in business, which can be subject to frequent fluctuations. Consequently, positive alterations in estimates could signify an optimistic outlook on the company’s performance.

Analyzing the company’s valuation, Analog Devices presently boasts a Forward P/E ratio of 16.8, which presents a discount when compared to the average Forward P/E of 19.16 within its industry.

Meanwhile, ADI’s PEG ratio is presently 1.74. This widely-used metric resembles the well-known P/E ratio, yet the distinction lies in the PEG ratio’s incorporation of the company’s anticipated earnings growth rate. As of the close of the previous day, the Semiconductor – Analog and Mixed industry had an average PEG ratio of 2.32.

It’s worth noting that the Semiconductor – Analog and Mixed industry operates within the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 173, placing it in the lower 32% of all industries numbering 250 or more.

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