Analog Devices (ADI) ended the recent trading session at $226.68, demonstrating a +1.58% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.73%. At the same time, the Dow lost 0.64%, and the tech-heavy Nasdaq gained 1.61%.

Prior to today's trading, shares of the semiconductor maker had gained 24.94% over the past month. This has outpaced the Computer and Technology sector's gain of 11.93% and the S&P 500's gain of 9.07% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Analog Devices in its upcoming earnings disclosure. The company's earnings report is set to go public on May 22, 2025. The company is forecasted to report an EPS of $1.69, showcasing a 20.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.5 billion, indicating a 15.9% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.11 per share and a revenue of $10.27 billion, indicating changes of +11.44% and +8.97%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Analog Devices. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Analog Devices holds a Zacks Rank of #3 (Hold).

Digging into valuation, Analog Devices currently has a Forward P/E ratio of 31.38. This signifies a discount in comparison to the average Forward P/E of 35.68 for its industry.

We can additionally observe that ADI currently boasts a PEG ratio of 2.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Semiconductor - Analog and Mixed was holding an average PEG ratio of 2.13 at yesterday's closing price.

Story Continues

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons 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

This article originally published on Zacks Investment Research (zacks.com).

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