Why Analog Devices (ADI) Outpaced the Stock Market Today

Analog Devices (ADI) closed at $299.16 in the latest trading session, marking a +2.14% move from the prior day. This change outpaced the S&P 500's 0.01% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%. Shares of the semiconductor maker witnessed a gain of 4.02% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.69%, and the S&P 500's gain of 0.86%.Market participants will be closely following the financial results of Analog Devices in its upcoming release. The company is forecasted to report an EPS of $2.28, showcasing a 39.88% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.11 billion, indicating a 28.21% upward movement from the same quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.79 per share and revenue of $12.82 billion, indicating changes of +25.67% and +16.36%, respectively, compared to the previous year. Any recent changes to analyst estimates for Analog Devices should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Analog Devices presently features a Zacks Rank of #1 (Strong Buy). In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 29.92. For comparison, its industry has an average Forward P/E of 40.79, which means Analog Devices is trading at a discount to the group. We can additionally observe that ADI currently boasts a PEG ratio of 1.62. 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. As of the close of trade yesterday, the Semiconductor - Analog and Mixed industry held an average PEG ratio of 2.29. The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks