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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $260.23, marking a -0.44% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the software maker had gained 7.84% in the past month. In that same time, the Computer and Technology sector gained 7.64%, while the S&P 500 gained 5.93%.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. The company is expected to report EPS of $1.61, up 3.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 22.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.77 per share and revenue of $11.15 billion, which would represent changes of +14.94% and +23.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ADBE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 remained stagnant. ADBE currently has a Zacks Rank of #3 (Hold).
Investors should also note ADBE's current valuation metrics, including its Forward P/E ratio of 33.63. For comparison, its industry has an average Forward P/E of 28.25, which means ADBE is trading at a premium to the group.
Also, we should mention that ADBE has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $260.23, marking a -0.44% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the software maker had gained 7.84% in the past month. In that same time, the Computer and Technology sector gained 7.64%, while the S&P 500 gained 5.93%.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. The company is expected to report EPS of $1.61, up 3.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 22.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.77 per share and revenue of $11.15 billion, which would represent changes of +14.94% and +23.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ADBE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 remained stagnant. ADBE currently has a Zacks Rank of #3 (Hold).
Investors should also note ADBE's current valuation metrics, including its Forward P/E ratio of 33.63. For comparison, its industry has an average Forward P/E of 28.25, which means ADBE is trading at a premium to the group.
Also, we should mention that ADBE has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.