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Why Adobe Systems (ADBE) Dipped More Than Broader Market Today
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The latest trading session saw Adobe Systems (ADBE - Free Report) ending at $613.93, denoting a -1.39% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the software maker had gained 4.54% over the past month. This has lagged the Computer and Technology sector's gain of 5.93% and outpaced the S&P 500's gain of 3.05% in that time.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. The company is expected to report EPS of $4.38, up 15.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 9.24% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $18.03 per share and revenue of $21.42 billion. These results would represent year-over-year changes of +12.2% and +10.36%, respectively.
Investors might also notice recent changes to analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is presently being traded at a Forward P/E ratio of 34.54. Its industry sports an average Forward P/E of 33.85, so one might conclude that Adobe Systems is trading at a premium comparatively.
We can additionally observe that ADBE currently boasts a PEG ratio of 2.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.35.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Adobe Systems (ADBE) Dipped More Than Broader Market Today
The latest trading session saw Adobe Systems (ADBE - Free Report) ending at $613.93, denoting a -1.39% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the software maker had gained 4.54% over the past month. This has lagged the Computer and Technology sector's gain of 5.93% and outpaced the S&P 500's gain of 3.05% in that time.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. The company is expected to report EPS of $4.38, up 15.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.08 billion, up 9.24% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $18.03 per share and revenue of $21.42 billion. These results would represent year-over-year changes of +12.2% and +10.36%, respectively.
Investors might also notice recent changes to analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is presently being traded at a Forward P/E ratio of 34.54. Its industry sports an average Forward P/E of 33.85, so one might conclude that Adobe Systems is trading at a premium comparatively.
We can additionally observe that ADBE currently boasts a PEG ratio of 2.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.35.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.