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Adobe Systems (ADBE) Laps the Stock Market: Here's Why
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In the latest market close, Adobe Systems (ADBE - Free Report) reached $565.47, with a +0.32% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.3%.
Coming into today, shares of the software maker had gained 7.02% in the past month. In that same time, the Computer and Technology sector gained 3.65%, while the S&P 500 gained 3.08%.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company plans to announce its earnings on December 13, 2023. The company's upcoming EPS is projected at $4.13, signifying a 14.72% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.01 billion, showing a 10.65% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.93 per share and revenue of $19.37 billion. These totals would mark changes of +16.19% and +10.01%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Adobe Systems boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 35.4. This denotes a premium relative to the industry's average Forward P/E of 26.54.
Meanwhile, ADBE's PEG ratio is currently 2.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.27.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Laps the Stock Market: Here's Why
In the latest market close, Adobe Systems (ADBE - Free Report) reached $565.47, with a +0.32% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.3%.
Coming into today, shares of the software maker had gained 7.02% in the past month. In that same time, the Computer and Technology sector gained 3.65%, while the S&P 500 gained 3.08%.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company plans to announce its earnings on December 13, 2023. The company's upcoming EPS is projected at $4.13, signifying a 14.72% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.01 billion, showing a 10.65% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.93 per share and revenue of $19.37 billion. These totals would mark changes of +16.19% and +10.01%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Adobe Systems boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 35.4. This denotes a premium relative to the industry's average Forward P/E of 26.54.
Meanwhile, ADBE's PEG ratio is currently 2.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.27.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.