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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 $377.56, marking a +1.65% move from the previous day. This move outpaced the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 4.46%.
Prior to today's trading, shares of the software maker had lost 2.74% over the past month. This has lagged the Computer and Technology sector's gain of 2.72% and the S&P 500's gain of 4.04% in that time.
Wall Street will be looking for positivity from Adobe Systems as it approaches its next earnings report date. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.76 billion, up 8.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.41 per share and revenue of $19.21 billion, which would represent changes of +12.4% and +9.14%, respectively, from the prior 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. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. Adobe Systems is currently a Zacks Rank #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 24.1. This represents a discount compared to its industry's average Forward P/E of 26.97.
Meanwhile, ADBE's PEG ratio is currently 1.8. 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. ADBE's industry had an average PEG ratio of 2.1 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 116, which puts it in the top 47% 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $377.56, marking a +1.65% move from the previous day. This move outpaced the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 4.46%.
Prior to today's trading, shares of the software maker had lost 2.74% over the past month. This has lagged the Computer and Technology sector's gain of 2.72% and the S&P 500's gain of 4.04% in that time.
Wall Street will be looking for positivity from Adobe Systems as it approaches its next earnings report date. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.76 billion, up 8.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.41 per share and revenue of $19.21 billion, which would represent changes of +12.4% and +9.14%, respectively, from the prior 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. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. Adobe Systems is currently a Zacks Rank #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 24.1. This represents a discount compared to its industry's average Forward P/E of 26.97.
Meanwhile, ADBE's PEG ratio is currently 1.8. 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. ADBE's industry had an average PEG ratio of 2.1 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 116, which puts it in the top 47% 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.