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Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $306.37, moving +1.32% from the previous trading session. This move lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the software maker had gained 5.34% over the past month. This has outpaced the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.49, up 9.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.52 billion, up 10.03% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $13.61 per share and revenue of $17.6 billion. These results would represent year-over-year changes of +9.05% and +11.52%, respectively.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 22.22. For comparison, its industry has an average Forward P/E of 22.93, which means Adobe Systems is trading at a discount to the group.
We can also see that ADBE currently has a PEG ratio of 1.74. 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 2.01 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $306.37, moving +1.32% from the previous trading session. This move lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the software maker had gained 5.34% over the past month. This has outpaced the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.49, up 9.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.52 billion, up 10.03% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $13.61 per share and revenue of $17.6 billion. These results would represent year-over-year changes of +9.05% and +11.52%, respectively.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 22.22. For comparison, its industry has an average Forward P/E of 22.93, which means Adobe Systems is trading at a discount to the group.
We can also see that ADBE currently has a PEG ratio of 1.74. 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 2.01 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.