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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $418.16, moving +0.4% from the previous trading session. This change outpaced the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the software maker had gained 2.18% over the past month, outpacing the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.32% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. In that report, analysts expect Adobe Systems to post earnings of $3.35 per share. This would mark year-over-year growth of 10.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.34 billion, up 13.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.59 per share and revenue of $17.83 billion, which would represent changes of +8.89% and +12.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.03% higher. Adobe Systems is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 30.66. For comparison, its industry has an average Forward P/E of 27.68, which means Adobe Systems is trading at a premium to the group.
Meanwhile, ADBE's PEG ratio is currently 1.76. 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. The Computer - Software industry currently had an average PEG ratio of 2.25 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 176, putting it in the bottom 31% 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.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.
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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $418.16, moving +0.4% from the previous trading session. This change outpaced the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the software maker had gained 2.18% over the past month, outpacing the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.32% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. In that report, analysts expect Adobe Systems to post earnings of $3.35 per share. This would mark year-over-year growth of 10.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.34 billion, up 13.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.59 per share and revenue of $17.83 billion, which would represent changes of +8.89% and +12.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.03% higher. Adobe Systems is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 30.66. For comparison, its industry has an average Forward P/E of 27.68, which means Adobe Systems is trading at a premium to the group.
Meanwhile, ADBE's PEG ratio is currently 1.76. 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. The Computer - Software industry currently had an average PEG ratio of 2.25 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 176, putting it in the bottom 31% 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.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.