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Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $653.10, marking a +0.48% move from the previous day. This move outpaced the S&P 500's daily gain of 0.31%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.48%.
Heading into today, shares of the software maker had lost 2.69% over the past month, lagging the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release, which is expected to be December 16, 2021. The company is expected to report EPS of $3.18, up 13.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, up 19.13% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Adobe Systems. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Adobe Systems is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 45.83. For comparison, its industry has an average Forward P/E of 36.58, which means Adobe Systems is trading at a premium to the group.
Investors should also note that ADBE has a PEG ratio of 2.4 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 3.04 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 118, which puts it in the top 47% 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.
View the Zacks #1 Rank List
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Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $653.10, marking a +0.48% move from the previous day. This move outpaced the S&P 500's daily gain of 0.31%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.48%.
Heading into today, shares of the software maker had lost 2.69% over the past month, lagging the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release, which is expected to be December 16, 2021. The company is expected to report EPS of $3.18, up 13.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, up 19.13% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Adobe Systems. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Adobe Systems is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 45.83. For comparison, its industry has an average Forward P/E of 36.58, which means Adobe Systems is trading at a premium to the group.
Investors should also note that ADBE has a PEG ratio of 2.4 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 3.04 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 118, which puts it in the top 47% 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.