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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 $377.67, marking a -0.68% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.98%.
Prior to today's trading, shares of the software maker had gained 3.05% over the past month. This has outpaced the Computer and Technology sector's gain of 2.75% and lagged the S&P 500's gain of 4.59% 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 $3.78 per share, which would represent year-over-year growth of 12.84%. Our most recent consensus estimate is calling for quarterly revenue of $4.76 billion, up 8.59% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $15.41 per share and revenue of $19.21 billion. These results would represent year-over-year changes of +12.4% and +9.14%, respectively.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 0.28% higher within the past month. Adobe Systems is currently a Zacks Rank #2 (Buy).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 24.68. This valuation marks a discount compared to its industry's average Forward P/E of 27.4.
We can also see that ADBE currently has a PEG ratio of 1.85. 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. The Computer - Software industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $377.67, marking a -0.68% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.98%.
Prior to today's trading, shares of the software maker had gained 3.05% over the past month. This has outpaced the Computer and Technology sector's gain of 2.75% and lagged the S&P 500's gain of 4.59% 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 $3.78 per share, which would represent year-over-year growth of 12.84%. Our most recent consensus estimate is calling for quarterly revenue of $4.76 billion, up 8.59% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $15.41 per share and revenue of $19.21 billion. These results would represent year-over-year changes of +12.4% and +9.14%, respectively.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 0.28% higher within the past month. Adobe Systems is currently a Zacks Rank #2 (Buy).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 24.68. This valuation marks a discount compared to its industry's average Forward P/E of 27.4.
We can also see that ADBE currently has a PEG ratio of 1.85. 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. The Computer - Software industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.