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Analog Devices (ADI) ended the recent trading session at $237.72, demonstrating a -0.35% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.4%.

Shares of the semiconductor maker have appreciated by 3.19% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.

Analysts and investors alike will be keeping a close eye on the performance of Analog Devices in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.50, indicating a 39.76% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.27 billion, indicating a 26.09% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.24 per share and revenue of $9.31 billion, which would represent changes of -38.16% and -24.34%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Analog Devices. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate has remained steady. Analog Devices is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Analog Devices is currently being traded at a Forward P/E ratio of 38.23. This signifies no noticeable deviation in comparison to the average Forward P/E of 38.23 for its industry.

Meanwhile, ADI's PEG ratio is currently 4.02. 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 average PEG ratio for the Semiconductor - Analog and Mixed industry stood at 3.41 at the close of the market 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 108, placing it within the top 43% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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