Why No Tech Stock Should Trade at a Higher PE Than Apple or Nvidia — A Case for Shorting Analog Devices (ADI)
No technology company should be trading at a higher price-to-earnings (PE) ratio than industry giants like Nvidia or Apple. That principle applies directly to Analog Devices (ADI), which is currently overvalued relative to its peers.
As long as ADI's price stays below $216, I believe it presents a compelling short opportunity. My short targets are as follows:
- Target 1: $190
- Target 2: $168
- Target 3: $146
These price levels not only offer solid exit points for short positions but also serve as attractive long-term entry points for those looking to hold ADI shares at more reasonable valuations. For traders, these levels can be leveraged effectively through option strategies to maximize risk-reward potential.
No technology company should be trading at a higher price-to-earnings (PE) ratio than industry giants like Nvidia or Apple. That principle applies directly to Analog Devices (ADI), which is currently overvalued relative to its peers.
As long as ADI's price stays below $216, I believe it presents a compelling short opportunity. My short targets are as follows:
- Target 1: $190
- Target 2: $168
- Target 3: $146
These price levels not only offer solid exit points for short positions but also serve as attractive long-term entry points for those looking to hold ADI shares at more reasonable valuations. For traders, these levels can be leveraged effectively through option strategies to maximize risk-reward potential.
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.