ADI Stock Analysis: Buy, Sell, or Hold?
ADI - Analog Devices, Inc.
$416.52
8.00 (1.96%)
▲
5d:
+4.73%
30d:
+18.55%
90d:
+29.98%
HOLD
MODERATE Confidence
Analysis Updated: May 8, 2026 12:00 AM ET
Earnings: May 20, 2026
10d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ADI trades at premium valuation expecting 5.3% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: ADI trades at premium valuation expecting 5.3% 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
$512.47
Based on 9.4% avg growth
INTRINSIC VALUE TODAY
$318.21
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 $416.52, which is considered extended relative to its 30-day fair value range of $335.38 to $401.39. From a valuation perspective, the stock is trading at a premium (Forward PE: 31.7) compared to its historical average (27.1). At these levels, the market is pricing in 5.3% 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. The price is approaching resistance at $418.75. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: ADI has a strong technical setup (60/100), 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. The price is approaching resistance at $418.75. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: ADI has a strong technical setup (60/100), 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
$335.38 -
$401.39
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
54.8%
Protect Your Profits
ADI is technically overbought (RSI 70). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($392.94)
- NEUTRAL: PE elevated vs history but 5.3% growth expectation is conservative given 117% recent growth
Trading Range Analysis
30-Day Trading Range
$335.38 -
$401.39
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$382.45
Resistance Level
$418.75
Current Trend
Strong Uptrend
Technical data as of
May 8, 2026
Fundamental Context
Forward P/E (Next Year Est.)
31.67
Wall Street Target
$392.94
(-5.7%)
Revenue Growth (YoY)
30.4%
Earnings Growth (YoY)
116.7%
Profit Margin
23.0%
Valuation Premium vs History
+5.3% premium
PE vs Historical
31.7 vs 27.1
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+5.3%
(market-implied from PE analysis)
1-Year Target
$438.60
(+5%)
2-Year Target
$461.84
(+11%)
3-Year Target
$486.32
(+17%)
3-Yr Target (if PE normalizes)
(PE: 32→27)
PE COMPRESSION
$416.10
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 31.7, Growth: 14.7%)
$628.08
(+51%)
Base:
(SPY PE: 21.9, Growth: 14.7%)
$435.06
(+5%)
Bear:
(PE: 18.6, Growth: 14.7%)
$369.80
(-11%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (35x PE), but valuation improves significantly next year (32x PE) as earnings recover.
Forward PE: 34.84 | Forward EPS (Implied): $11.95
Bull Case
$502.95
(+21%)
Analyst growth 15.0%, PE expands to 36.6
Base Case
$416.52
(0%)
Market implied 0.0%, PE stable at 34.8
Bear Case
$318.64
(-24%)
Severe decline -15.0%, PE contracts to 31.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 09, 2026 9:40 AM ET
Data refreshes hourly during market hours. Next update: 10:40 AM
Data refreshes hourly during market hours. Next update: 10:40 AM
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Technical Signals Check
Is ADI showing a specific setup today?
Insider Activity (6 Months)
2
Buys
18
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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