Analog Devices (ADI) ended the recent trading session at $365.83, demonstrating a -1.63% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.

Prior to today's trading, shares of the semiconductor maker had lost 5.08% lagged the Computer and Technology sector's loss of 2.91% and the S&P 500's gain of 1.7%.

The upcoming earnings release of Analog Devices will be of great interest to investors. The company's earnings report is expected on August 19, 2026. The company's upcoming EPS is projected at $3.33, signifying a 62.44% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.92 billion, indicating a 36.25% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.42 per share and revenue of $14.55 billion, indicating changes of +59.44% and +32.03%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Analog Devices. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.85% higher within the past month. Analog Devices presently features a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Analog Devices is presently trading at a Forward P/E ratio of 29.94. This valuation marks a discount compared to its industry average Forward P/E of 45.71.

One should further note that ADI currently holds a PEG ratio of 0.96. 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 industry currently had an average PEG ratio of 0.98 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 25, placing it within the top 11% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ADI in the coming trading sessions, be sure to utilize Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

See 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 Report

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

Zacks Investment Research