Analog Devices Inc. Receives High Rating from Growth Model

Analog Devices Inc. (ADI) garners a strong 62% rating based on the Growth Investor model. This reflects its persistent sales growth and favorable earnings metrics, despite some areas of concern. Investors should keep an eye on ADI's fundamentals as market conditions evolve.

Date: 09-01-2025

AI Rating: 6

Performance Overview of Analog Devices Inc.
According to the report, Analog Devices Inc. rates highly in the Growth Investor model with a score of 62%. This indicates a reasonable interest level in the stock, although it falls short of the threshold that usually indicates strong interest.

The analysis shows that ADI successfully passes several critical growth criteria:

Revenue Growth in relation to EPS Growth: PASS
Sales Growth Rate: PASS
Current Quarter Earnings: PASS
Quarterly Earnings One Year Ago: PASS
Positive Earnings Growth Rate for Current Quarter: PASS
EPS Growth for Current Quarter must be greater than prior 3 Quarters: PASS
EPS Growth for Current Quarter must be greater than the historical growth rate: PASS
Total Debt/Equity Ratio: PASS
Insider Transactions: PASS

However, the report notes critical areas where the stock does not meet expectations:

P/E Ratio: FAIL
Earnings Growth Rate for the Past Several Quarters: FAIL
Earnings Persistence: FAIL
Long-Term EPS Growth: FAIL

This combination might raise a flag for potential investors as it shows inconsistency in earnings persistence and a lack of long-term EPS growth. The high P/E ratio could indicate overvaluation in the current market, which may adversely impact investor sentiment.

Overall, while ADI showcases promising sales and earnings metrics, its failures in certain key areas suggest caution for investors. Further monitoring of these fundamentals will be essential as market dynamics shift.

Stocks: ADI