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Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $640.40, moving +0.03% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%.
Heading into today, shares of the software maker had gained 14.63% over the past month, outpacing the Computer and Technology sector's gain of 5.35% and the S&P 500's gain of 5.96% 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 $3.18 per share, which would represent year-over-year growth of 13.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, up 19.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.46 per share and revenue of $15.75 billion. These totals would mark changes of +23.37% and +22.43%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ADBE. 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ADBE is currently a Zacks Rank #2 (Buy).
Digging into valuation, ADBE currently has a Forward P/E ratio of 51.38. Its industry sports an average Forward P/E of 38.7, so we one might conclude that ADBE is trading at a premium comparatively.
It is also worth noting that ADBE currently has a PEG ratio of 2.7. 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. ADBE's industry had an average PEG ratio of 2.84 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Gains But Lags Market: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $640.40, moving +0.03% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%.
Heading into today, shares of the software maker had gained 14.63% over the past month, outpacing the Computer and Technology sector's gain of 5.35% and the S&P 500's gain of 5.96% 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 $3.18 per share, which would represent year-over-year growth of 13.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, up 19.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.46 per share and revenue of $15.75 billion. These totals would mark changes of +23.37% and +22.43%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ADBE. 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.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ADBE is currently a Zacks Rank #2 (Buy).
Digging into valuation, ADBE currently has a Forward P/E ratio of 51.38. Its industry sports an average Forward P/E of 38.7, so we one might conclude that ADBE is trading at a premium comparatively.
It is also worth noting that ADBE currently has a PEG ratio of 2.7. 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. ADBE's industry had an average PEG ratio of 2.84 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.