Is Analog Devices, Inc. (NASDAQ:ADI) Stock Being Overlooked?

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Analog Devices, Inc. (NASDAQ:ADI) stock doesn't tend to make a lot of big headlines and ends up often overlooked. As the companies earnings report approaches, August 22nd, Analog Devices, Inc. (NASDAQ:ADI) shares could be positioned for entry as attention is focused on the most immediate earnings reports and bigger name semiconductor manufacturers like Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA). Even if it isn't a well-known name the companies balance sheet speaks for itself.

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Analog Devices, Inc. (NASDAQ:ADI) has been reaching out to a global market for years and has very little debt amid increasing revenues, around 5.1 billion USD right now. SimilarlyAnalog Devices, Inc. (NASDAQ:ADI) has consistently beat earnings quarter after quarter by 4-9% at a time. Most analysts at this time are predicting another beat but only by about 2% or so. Given their past and their peers' recent earnings it is reasonable to expect that  Analog Devices, Inc. (NASDAQ:ADI) will beat earnings by a higher margin than what analysts are currently predicting.

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Analog Devices, Inc. (NASDAQ:ADI) Outlook

The biggest concern is a slowdown from 2017's numbers. The price action has reflected this more or less, bouncing from 104 dollar highs to as low as 82 USD over the past 12 months. For the last monthAnalog Devices, Inc. (NASDAQ:ADI) has been on a slow downtrend bleeding from its recent 100 USD high and landing around 94 USD today. This trend will probably stay intact coming into earnings and might provide a great opportunity to buy shares as cheaply as possible while everyone is looking the other way, so to speak.

The prior earnings report in may showed great increases in revenue and a huge 274% increase in earnings per share. The technical setup going into the upcoming earnings report is very similar to the current one. A gradual decrease was met with a spike to new highs upon release of the news. It is likely history will repeat itself here opening a great opportunity for short-term portfolio gains.  Analog Devices, Inc. (NASDAQ:ADI) has been consistently rated as outperform and also makes for a good long-term prospect. With a small dividend and solid fundamentals, this is a low-risk multi-year hold likely to gain some momentum as the need for semiconductors on the global market increases.


Comments (6)

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  • Scott
  • ,  Contributor
  • 17 August 2018, 01:08 pm

Morgan Stanley downgrades semiconductor industry view to Cautious\nAUG 9, 2018

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    Analog Devices is one of the least dependent semiconductor companies in terms of reliance. Their percentage of business with China is between 10-15%

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      • Jesse
      • ,  Contributor
      • 17 August 2018, 01:08 pm

      I can’t see any kind of future in which chips will not be basically in everything.

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        • John R
        • ,  Contributor
        • 17 August 2018, 01:08 pm

        Semi sector is firing on all cylinders

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          Not right now

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            Rumor out about a collaboration between ADI and BIDU on autonomous systems. Anyone able to confirm this? Haven\'t found any official PR yet

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