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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 at $375 in the latest trading session, marking a +1.08% move from the prior day. The stock lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 11.35%.
Prior to today's trading, shares of the software maker had gained 7.73% over the past month. This has lagged the Computer and Technology sector's gain of 10.31% and outpaced the S&P 500's gain of 4.49% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release, which is expected to be March 15, 2023. On that day, Adobe Systems is projected to report earnings of $3.66 per share, which would represent year-over-year growth of 8.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, up 8.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $19.19 billion, which would represent changes of +11.31% and +9.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 24.31. This valuation marks a discount compared to its industry's average Forward P/E of 28.4.
Meanwhile, ADBE's PEG ratio is currently 1.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.11 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 148, which puts it in the bottom 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
Adobe Systems (ADBE - Free Report) closed at $375 in the latest trading session, marking a +1.08% move from the prior day. The stock lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 11.35%.
Prior to today's trading, shares of the software maker had gained 7.73% over the past month. This has lagged the Computer and Technology sector's gain of 10.31% and outpaced the S&P 500's gain of 4.49% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release, which is expected to be March 15, 2023. On that day, Adobe Systems is projected to report earnings of $3.66 per share, which would represent year-over-year growth of 8.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, up 8.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $19.19 billion, which would represent changes of +11.31% and +9.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 24.31. This valuation marks a discount compared to its industry's average Forward P/E of 28.4.
Meanwhile, ADBE's PEG ratio is currently 1.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.11 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 148, which puts it in the bottom 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.