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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $505.08, marking a +1.46% move from the previous day. This move outpaced the S&P 500's daily loss of 0.21%.
Prior to today's trading, shares of the software maker had lost 3.47% over the past month. This has lagged the Computer and Technology sector's loss of 1.96% and the S&P 500's gain of 0.59% in that time.
ADBE will be looking to display strength as it nears its next earnings release. On that day, ADBE is projected to report earnings of $2.81 per share, which would represent year-over-year growth of 14.69%. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, up 19.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.88 per share and revenue of $15.49 billion. These totals would mark changes of +17.62% and +20.4%, respectively, from last year.
Any recent changes to analyst estimates for ADBE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. ADBE is currently a Zacks Rank #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 41.89. Its industry sports an average Forward P/E of 35.97, so we one might conclude that ADBE is trading at a premium comparatively.
Also, we should mention that ADBE has a PEG ratio of 2.29. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% 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 As Market Dips: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $505.08, marking a +1.46% move from the previous day. This move outpaced the S&P 500's daily loss of 0.21%.
Prior to today's trading, shares of the software maker had lost 3.47% over the past month. This has lagged the Computer and Technology sector's loss of 1.96% and the S&P 500's gain of 0.59% in that time.
ADBE will be looking to display strength as it nears its next earnings release. On that day, ADBE is projected to report earnings of $2.81 per share, which would represent year-over-year growth of 14.69%. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, up 19.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.88 per share and revenue of $15.49 billion. These totals would mark changes of +17.62% and +20.4%, respectively, from last year.
Any recent changes to analyst estimates for ADBE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. ADBE is currently a Zacks Rank #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 41.89. Its industry sports an average Forward P/E of 35.97, so we one might conclude that ADBE is trading at a premium comparatively.
Also, we should mention that ADBE has a PEG ratio of 2.29. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% 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.