Analog Devices Inc. (NASDAQ: ADI) is a technology company that develops integrated circuits and radio devices for wireless communications and networking. It is a key supplier to telecommunications and infrastructure firms and is ready to capitalize on the huge investment in America’s 5G cellular rollout.
The company faced challenges in 2020, due to chip shortages and supply chain interruptions caused by the Coronavirus Pandemic. Lockdowns and other economic restrictions also hindered infrastructure investment, a significant source of income for Analog Devices.
With the worst of the Pandemic seemingly over and a new focus on American infrastructure, this company is ready to grow in 2021. EBITDA declined -8.65% in 2020 but Analog Devices still finished the year with a positive margin of 42.55%. This is likely to strengthen in 2021, with analysts expecting that earnings will be high, with a full-year target of $6.00 per share. The average stock target price of $181.55 reflects the company’s potential and the likelihood of strong returns for investors.
The growth potential and a dividend yield of 1.83% at today’s price make this one of the most compelling technology stocks to watch in March and throughout the rest of the year.
- 1 Year Price Growth: 43%
- YTD Price Growth: 83%
- 3 Month Price Growth: 04%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.