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Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $465.54, marking a +0.37% move from the previous day. This change lagged the S&P 500's 2.24% gain on the day. At the same time, the Dow added 2.51%, and the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the software maker had lost 5.93% over the past month, lagging the Computer and Technology sector's loss of 3.39% and the S&P 500's loss of 2.58% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release. On that day, Adobe Systems is projected to report earnings of $3.34 per share, which would represent year-over-year growth of 6.37%. Meanwhile, our latest consensus estimate is calling for revenue of $4.23 billion, up 8.34% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.72 per share and revenue of $17.89 billion. These totals would mark changes of +9.94% and +13.35%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 33.82. Its industry sports an average Forward P/E of 31.47, so we one might conclude that Adobe Systems is trading at a premium comparatively.
Also, we should mention that ADBE has a PEG ratio of 1.96. 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 2.6 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 162, which puts it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $465.54, marking a +0.37% move from the previous day. This change lagged the S&P 500's 2.24% gain on the day. At the same time, the Dow added 2.51%, and the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the software maker had lost 5.93% over the past month, lagging the Computer and Technology sector's loss of 3.39% and the S&P 500's loss of 2.58% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release. On that day, Adobe Systems is projected to report earnings of $3.34 per share, which would represent year-over-year growth of 6.37%. Meanwhile, our latest consensus estimate is calling for revenue of $4.23 billion, up 8.34% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.72 per share and revenue of $17.89 billion. These totals would mark changes of +9.94% and +13.35%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 33.82. Its industry sports an average Forward P/E of 31.47, so we one might conclude that Adobe Systems is trading at a premium comparatively.
Also, we should mention that ADBE has a PEG ratio of 1.96. 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 2.6 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 162, which puts it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.