Analog Devices (ADI) closed the most recent trading day at $232.05, moving -0.18% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.39%.

Heading into today, shares of the semiconductor maker had gained 0.68% over the past month, lagging the Computer and Technology sector's gain of 2.7% and the S&P 500's gain of 2.43% in that time.

The investment community will be closely monitoring the performance of Analog Devices in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.63, reflecting a 18.91% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.41 billion, indicating a 11.4% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $6.34 per share and a revenue of $9.39 billion, demonstrating changes of -37.17% and -23.69%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Analog Devices currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Analog Devices is at present trading with a Forward P/E ratio of 36.65. Its industry sports an average Forward P/E of 39.96, so one might conclude that Analog Devices is trading at a discount comparatively.

Investors should also note that ADI has a PEG ratio of 3.86 right now. 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 industry had an average PEG ratio of 3.71 as trading concluded yesterday.

The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 26% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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