Analog Devices (ADI) closed at $179.16 in the latest trading session, marking a +0.45% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.81%. Elsewhere, the Dow gained 1.56%, while the tech-heavy Nasdaq added 2.06%.

The the stock of semiconductor maker has fallen by 12.48% in the past month, lagging the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14%.

The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.69, marking a 20.71% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, up 15.9% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.11 per share and revenue of $10.27 billion, which would represent changes of +11.44% and +8.97%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Analog Devices is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Analog Devices is currently exchanging hands at a Forward P/E ratio of 25.08. This represents no noticeable deviation compared to its industry's average Forward P/E of 25.08.

Meanwhile, ADI's PEG ratio is currently 2.09. 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. ADI's industry had an average PEG ratio of 1.61 as of yesterday's close.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 40% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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