Should I Buy ADI Stock in 2026?

Data-driven analysis and honest assessment for Analog Devices Inc

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $293.86P/E: 65.8

Decision Score

4.1/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)2/10

Very high P/E of 65.8 suggests overvaluation

Growth (20%)5/10

Slow growth of 0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)4/10

Low FCF yield of 2.4%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$293.86

P/E Ratio

65.85

Revenue Growth

0.3%

Profit Margin

0.2%

Market Cap

$147.4B

Dividend Yield

0.01%

How ADI Compares to Competitors

Understanding how ADI stacks up against peers helps inform your investment decision.

How ADI Compares to Peers

Upcoming Events for ADI

+5 Reasons TO Buy ADI

1. High gross margins of 61%

moderate

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

2. Large-cap stability and market leadership

moderate

With market cap over $100B, this company has established leadership and resources to weather cycles.

-5 Reasons NOT to Buy ADI

1. Expensive valuation at 66x earnings

high risk

P/E of 66 is significantly above averages. High expectations leave little room for disappointment.

2. Thin profit margins of 0.2%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

3. Minimal revenue growth

low risk

Growth of 0.3% barely keeps pace with inflation.

Who Should Buy ADI?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 66 doesn't fit value criteria

  • Income-Focused Retirees

    Low 0.0% yield

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

Consider These Alternatives

If you're interested in ADI, compare these Technology peers:

Pro tip: Compare ADI directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for ADI

Frequently Asked Questions

What is ADI stock price today?

ADI (Analog Devices Inc) stock is trading at $293.86 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is ADI stock going up or down today?

ADI stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy ADI stock now?

The decision to buy ADI depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is ADI a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for ADI based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is ADI stock overvalued or undervalued?

ADI currently trades at a P/E ratio of 65.85, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if ADI is fairly priced.

What is ADI's P/E ratio?

ADI has a price-to-earnings (P/E) ratio of 65.85, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is ADI's market cap?

ADI (Analog Devices Inc) has a market capitalization of $147.35 billion, making it a mid-cap stock.

What is ADI's price to book ratio?

ADI trades at a price-to-book (P/B) ratio of 4.36, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.