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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 $495.77, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.
Heading into today, shares of the software maker had gained 1.06% over the past month, outpacing the Computer and Technology sector's loss of 0.49% and the S&P 500's gain of 0.58% in that time.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.81, up 14.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Investors should also note any recent changes to analyst estimates for ADBE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.02% higher. ADBE currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ADBE has a Forward P/E ratio of 41.73 right now. For comparison, its industry has an average Forward P/E of 35.93, which means ADBE is trading at a premium to the group.
We can also see that ADBE currently has a PEG ratio of 2.28. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.37 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 132, putting it in the bottom 49% 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.
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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $495.77, marking a -0.03% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.
Heading into today, shares of the software maker had gained 1.06% over the past month, outpacing the Computer and Technology sector's loss of 0.49% and the S&P 500's gain of 0.58% in that time.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.81, up 14.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Investors should also note any recent changes to analyst estimates for ADBE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.02% higher. ADBE currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ADBE has a Forward P/E ratio of 41.73 right now. For comparison, its industry has an average Forward P/E of 35.93, which means ADBE is trading at a premium to the group.
We can also see that ADBE currently has a PEG ratio of 2.28. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.37 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 132, putting it in the bottom 49% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.