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Adobe Systems (ADBE) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Adobe Systems (ADBE - Free Report) closed the latest trading day at $604.56, indicating a -1.29% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.84%.
Coming into today, shares of the software maker had gained 8.66% in the past month. In that same time, the Computer and Technology sector gained 10.06%, while the S&P 500 gained 8.62%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on December 13, 2023. It is anticipated that the company will report an EPS of $4.13, marking a 14.72% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.01 billion, indicating a 10.65% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 34.3. This denotes a premium relative to the industry's average Forward P/E of 32.21.
One should further note that ADBE currently holds a PEG ratio of 2.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.46.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Adobe Systems (ADBE - Free Report) closed the latest trading day at $604.56, indicating a -1.29% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.84%.
Coming into today, shares of the software maker had gained 8.66% in the past month. In that same time, the Computer and Technology sector gained 10.06%, while the S&P 500 gained 8.62%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on December 13, 2023. It is anticipated that the company will report an EPS of $4.13, marking a 14.72% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.01 billion, indicating a 10.65% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 34.3. This denotes a premium relative to the industry's average Forward P/E of 32.21.
One should further note that ADBE currently holds a PEG ratio of 2.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.46.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.