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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $496.05, moving +0.46% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.11%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the software maker had gained 1.45% over the past month. This has lagged the Computer and Technology sector's gain of 7.49% and the S&P 500's gain of 2.46% in that time.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. On that day, ADBE is projected to report earnings of $2.77 per share, which would represent year-over-year growth of 22.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 22.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.25 per share and revenue of $15.23 billion, which would represent changes of +11.39% and +18.37%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. ADBE currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 43.76. For comparison, its industry has an average Forward P/E of 39.63, which means ADBE is trading at a premium to the group.
It is also worth noting that ADBE currently has a PEG ratio of 2.3. 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 was holding an average PEG ratio of 2.99 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 208, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $496.05, moving +0.46% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.11%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the software maker had gained 1.45% over the past month. This has lagged the Computer and Technology sector's gain of 7.49% and the S&P 500's gain of 2.46% in that time.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. On that day, ADBE is projected to report earnings of $2.77 per share, which would represent year-over-year growth of 22.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 22.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.25 per share and revenue of $15.23 billion, which would represent changes of +11.39% and +18.37%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. ADBE currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 43.76. For comparison, its industry has an average Forward P/E of 39.63, which means ADBE is trading at a premium to the group.
It is also worth noting that ADBE currently has a PEG ratio of 2.3. 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 was holding an average PEG ratio of 2.99 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 208, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.