Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

21. Analog Devices, Inc. (NASDAQ:ADI)

Consensus ROE: 17%

Number of Hedge Fund Investors in Q2 2024: 64

Analog Devices, Inc. (NASDAQ:ADI) is a semiconductor company that makes and sells signal processing, power management chips, amplifiers, and other chips. It is heavily reliant on the industrial and automotive industries for its revenue, as 77% of Analog Devices, Inc. (NASDAQ:ADI)’s sales of $6.9 billion during the nine months ending in July came from these two businesses. This, in turn, makes it unsurprising that the shares are up by a modest 19% year to date as both of Analog Devices, Inc. (NASDAQ:ADI)’s primary industries have been under a slowdown stemming from weak industrial output and a glut in the car industry. Looking ahead, since industrial orders typically pick up during the start of the year, the rest of 2024 might prove to be another slow period for Analog Devices, Inc. (NASDAQ:ADI) despite the fact that the firm’s second quarter sales of $2.3 billion beat the midpoint of analyst estimates of $2.27. On the flip side, should economic growth continue to remain robust and lower interest rates facilitate greater industrial activity, then Analog Devices, Inc. (NASDAQ:ADI) could see a release of pent up demand for its products.

Carillon Tower Advisors mentioned Analog Devices, Inc. (NASDAQ:ADI) in 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.”