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Strength Seen in Adobe (ADBE): Can Its 6.0% Jump Turn into More Strength?
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Adobe Systems (ADBE - Free Report) shares rallied 6% in the last trading session to close at $415.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10% gain over the past four weeks.
Adobe extended its rally, driven by the strength in its Creative Cloud, Document Cloud and Experience Cloud products. Also, growing emerging markets and robust online video creation demand are contributing well to its business performance.
This software maker is expected to post quarterly earnings of $3.78 per share in its upcoming report, which represents a year-over-year change of +12.8%. Revenues are expected to be $4.76 billion, up 8.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Adobe, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ADBE going forward to see if this recent jump can turn into more strength down the road.
Adobe is a member of the Zacks Computer - Software industry. One other stock in the same industry, Oracle (ORCL - Free Report) , finished the last trading session 0.2% lower at $104.08. ORCL has returned 9.9% over the past month.
For Oracle, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.58. This represents a change of +2.6% from what the company reported a year ago. Oracle currently has a Zacks Rank of #4 (Sell).
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Strength Seen in Adobe (ADBE): Can Its 6.0% Jump Turn into More Strength?
Adobe Systems (ADBE - Free Report) shares rallied 6% in the last trading session to close at $415.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10% gain over the past four weeks.
Adobe extended its rally, driven by the strength in its Creative Cloud, Document Cloud and Experience Cloud products. Also, growing emerging markets and robust online video creation demand are contributing well to its business performance.
This software maker is expected to post quarterly earnings of $3.78 per share in its upcoming report, which represents a year-over-year change of +12.8%. Revenues are expected to be $4.76 billion, up 8.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Adobe, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ADBE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Adobe is a member of the Zacks Computer - Software industry. One other stock in the same industry, Oracle (ORCL - Free Report) , finished the last trading session 0.2% lower at $104.08. ORCL has returned 9.9% over the past month.
For Oracle, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.58. This represents a change of +2.6% from what the company reported a year ago. Oracle currently has a Zacks Rank of #4 (Sell).