ADI Stock Analysis: Buy, Sell, or Hold?
ADI - Analog Devices, Inc.
$418.07
-8.73 (-2.04%)
▼
5d:
+0.37%
30d:
+18.16%
90d:
+24.02%
HOLD
MODERATE Confidence
Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: May 20, 2026
4d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ADI trades at premium valuation expecting 5.7% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: ADI trades at premium valuation expecting 5.7% growth. Hold existing positions but don't chase. Wait for better entry.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$518.18
Based on 9.5% avg growth
INTRINSIC VALUE TODAY
$321.75
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ADI is currently trading at $418.06, which is considered extended relative to its 30-day fair value range of $354.45 to $415.24. From a valuation perspective, the stock is trading at a premium (Forward PE: 32.3) compared to its historical average (27.3). At these levels, the market is pricing in 5.7% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, ADI is in a strong uptrend. Immediate support is located at $391.88, while resistance sits at $435.72.
Market Sentiment: ADI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ADI is in a strong uptrend. Immediate support is located at $391.88, while resistance sits at $435.72.
Market Sentiment: ADI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$354.45 -
$415.24
Company Quality Score
66/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
54.8%
Protect Your Profits
Holding ADI? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($397.94)
- NEUTRAL: PE elevated vs history but 5.7% growth expectation is conservative given 117% recent growth
Trading Range Analysis
30-Day Trading Range
$354.45 -
$415.24
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$391.88
Resistance Level
$435.72
Current Trend
Strong Uptrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
32.31
Wall Street Target
$397.94
(-6.8%)
Revenue Growth (YoY)
30.4%
Earnings Growth (YoY)
116.7%
Profit Margin
23.0%
Valuation Premium vs History
+5.7% premium
PE vs Historical
32.3 vs 27.3
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+5.7%
(market-implied from PE analysis)
1-Year Target
$451.12
(+6%)
2-Year Target
$476.83
(+12%)
3-Year Target
$504.01
(+18%)
3-Yr Target (if PE normalizes)
(PE: 32→27)
PE COMPRESSION
$425.82
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 32.3, Growth: 15.0%)
$648.98
(+52%)
Base:
(SPY PE: 22.0, Growth: 15.0%)
$442.65
(+4%)
Bear:
(PE: 18.7, Growth: 15.0%)
$376.26
(-12%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (36x PE), but valuation improves significantly next year (32x PE) as earnings recover.
Forward PE: 35.84 | Forward EPS (Implied): $11.91
Bull Case
$515.35
(+21%)
Analyst growth 15.0%, PE expands to 37.6
Base Case
$426.79
(0%)
Market implied 0.0%, PE stable at 35.8
Bear Case
$326.49
(-24%)
Severe decline -15.0%, PE contracts to 32.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 15, 2026 3:25 PM ET
Data refreshes hourly during market hours. Next update: 4:25 PM
Data refreshes hourly during market hours. Next update: 4:25 PM
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Technical Signals Check
Is ADI showing a specific setup today?
Insider Activity (6 Months)
2
Buys
17
Sells
Net
INSIDERS SELLING
Recent Transactions
Vincent Roche
SELL
10000 shares
2026-04-01
Richard McCormick
SELL
2026-03-19
Michael Sondel
SELL
4199 shares
2026-02-25
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