12 Best Long-term Stocks to Invest in for High Returns

9) Analog Devices, Inc. (NASDAQ:ADI)

Average Upside Potential: 24.2%

Number of Hedge Fund Holders: 63

Analog Devices, Inc. (NASDAQ:ADI) is engaged in designing, manufacturing, testing, and marketing integrated circuits (ICs), software, and subsystems products. CFRA analyst Angelo Zino upgraded the company’s stock from ‘Buy’ to ‘Strong Buy,’ while maintaining a price objective of $250.00. As per the analyst, the new capacity additions are expected to drive long-term growth, together with industrial advancements in instrumentation, testing, and factory automation.

Notably, the automotive sector is expected to act as Analog Devices, Inc. (NASDAQ:ADI)’s most significant growth opportunity, with its products in battery management systems, audio systems, and connectivity acting as potential drivers. The analyst also opines that stable pricing for Analog Devices, Inc. (NASDAQ:ADI)’s products and a rebound can enable it to increase returns to investors.  The company continues to make strategic, long-term investments throughout engineering, manufacturing, and the end-to-end customer experience.

For Q1 2025, Analog Devices, Inc. (NASDAQ:ADI) projects revenue of $2.35 billion (+/- $100 million). At the midpoint of this revenue outlook, the company anticipates a reported operating margin of ~22.0% (+/- 130 bps), and an adjusted operating margin of ~40.0% (+/- 100 bps). Carillon Tower Advisers, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Analog Devices, Inc. (NASDAQ:ADI) rebounded as management teams at several semiconductor companies in the analog space called the bottom, seeing improved conditions ahead. The analog semiconductor industry is a very cyclical business that has underperformed the broader semiconductor industry for several years.”