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Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $476.62, marking a +1.89% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.99%.
Prior to today's trading, shares of the software maker had lost 1.29% over the past month. This has lagged the Computer and Technology sector's gain of 1.21% and the S&P 500's gain of 1.2% in that time.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.79, up 22.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 21.96% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $11.26 per share and revenue of $15.22 billion. These results would represent year-over-year changes of +11.49% and +18.31%, respectively.
Investors should also note any recent changes to analyst estimates for ADBE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. ADBE is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 41.52. For comparison, its industry has an average Forward P/E of 40.46, which means ADBE is trading at a premium to the group.
It is also worth noting that ADBE currently has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software industry currently had an average PEG ratio of 2.89 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $476.62, marking a +1.89% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.99%.
Prior to today's trading, shares of the software maker had lost 1.29% over the past month. This has lagged the Computer and Technology sector's gain of 1.21% and the S&P 500's gain of 1.2% in that time.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.79, up 22.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 21.96% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $11.26 per share and revenue of $15.22 billion. These results would represent year-over-year changes of +11.49% and +18.31%, respectively.
Investors should also note any recent changes to analyst estimates for ADBE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. ADBE is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 41.52. For comparison, its industry has an average Forward P/E of 40.46, which means ADBE is trading at a premium to the group.
It is also worth noting that ADBE currently has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software industry currently had an average PEG ratio of 2.89 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.