Adobe Systems (ADBE - Free Report) closed the most recent trading day at $513.39, moving -0.59% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.78%, and the tech-heavy Nasdaq gained 0.68%.
Prior to today's trading, shares of the software maker had gained 17.67% over the past month. This has outpaced the Computer and Technology sector's gain of 13.31% and the S&P 500's gain of 9.15% in that time.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. In that report, analysts expect ADBE to post earnings of $2.40 per share. This would mark year-over-year growth of 17.07%. Meanwhile, our latest consensus estimate is calling for revenue of $3.15 billion, up 11.24% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.77 per share and revenue of $12.71 billion. These totals would mark changes of +24.14% and +13.81%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ADBE. 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.
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 remained stagnant. ADBE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 52.88. This represents a premium compared to its industry's average Forward P/E of 35.94.
Investors should also note that ADBE has a PEG ratio of 3.3 right now. 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 was holding an average PEG ratio of 2.61 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.