Is Analog Devices, Inc. (ADI) Stock a Good Investment?

By AAII Staff
September 03, 2026
Featured Tickers:
ADI

Learn more about whether Analog Devices, Inc. is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (ADI) grades on certain investment factors and determine whether it meets your investment needs.

Latest Analog Devices, Inc. Stock News

As of September 02, 2026, Analog Devices, Inc. had a $172.4 billion market capitalization, putting it in the 98th percentile of companies in the Semiconductors & Semiconductor Equipment industry.

Currently, Analog Devices, Inc.’s price-earnings ratio is 42.2. Analog Devices, Inc.’s trailing 12-month revenue is $13.9 billion with a 29.8% profit margin. Year-over-year quarterly sales growth most recently was 39.6%. Analysts expect adjusted earnings to reach $12.845 per share for the current fiscal year. Analog Devices, Inc. currently has a 1.2% dividend yield.



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Grading Analog Devices, Inc. Stock

Before you choose to buy, sell or hold Analog Devices, Inc. stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (ADI) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Analog Devices, Inc.’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Analog Devices, Inc. Stock Value Grade

Value Grade:

Metric Rank ADI Sector Median
Price/Sales 91 12.56 2.93
Price/Earnings 81 42.2 37.1
EV/EBITDA 85 26.4 19.9
Shareholder Yield 26 2.9% (1.7%)
Price/Book Value 79 5.14 3.14
Price/Free Cash Flow 87 60.0 24.8

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Analog Devices, Inc. has a Value Score of 12, which is Ultra Expensive.

Analog Devices, Inc. Stock Growth Grade

Growth Grade:

Metric Metric Score ADI Sector Median
Sales Growth 5yr Ann'l 80 14.5% 9.0%
Sales Increases YoY Last 5 yrs 80 4 of 5 3 of 5
Cash from Operations Ann'l Positive Last 5 yrs 100 5 of 5 4 of 5

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

Analog Devices, Inc. has a Growth Score of 82, which is Very Strong.

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Analog Devices, Inc. Stock Momentum Grade

Momentum Grade:

Metric Score ADI Sector Median
Relative Price Strength (Q1) 23 (17.9%) (14.2%)
Relative Price Strength (Q2) 85 17.0% 3.1%
Relative Price Strength (Q3) 81 20.9% (8.8%)
Relative Price Strength (Q4) 75 5.4% (8.1%)
Relative Price Strength (weighted 4 qtr) 57 1.5% (1.3%)

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Analog Devices, Inc. has a Momentum Score of 57, which is Average.

Other Analog Devices, Inc. Stock Grades

In addition to Value, Momentum and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

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The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F—Score.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Analog Devices, Inc.’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy Analog Devices, Inc. Stock?

Overall, Analog Devices, Inc. stock has a Value Grade of F, Growth Grade of A, and Momentum Grade of C.

Whether or not you should buy Analog Devices, Inc. stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Analog Devices, Inc. stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

Analog Devices, Inc. (ADI) Competitors

Companies similar to Analog Devices, Inc. in the Semiconductors & Semiconductor Equipment industry.

Company name Ticker Market Cap
Advantest Corporation ATEYY $151.15Bil
Marvell Technology, Inc. MRVL $181.06Bil
QUALCOMM Incorporated QCOM $178.50Bil
Tokyo Electron Limited TOELY $160.13Bil
Texas Instruments Incorporated TXN $232.70Bil

Analog Devices, Inc. Stock: Bottom Line

You can use the information about how Analog Devices, Inc. is graded to determine if you should invest in this stock. However, you should decide whether Analog Devices, Inc.’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether Analog Devices, Inc. is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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