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Here's Why Adobe Systems (ADBE) Fell More Than Broader Market
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $601.89, marking a -1.63% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.37% for the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 1.8%.
Shares of the software maker witnessed a gain of 2.56% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.88% and the S&P 500's gain of 5.1%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.38, marking a 15.26% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.08 billion, up 9.24% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.03 per share and a revenue of $21.42 billion, signifying shifts of +12.2% and +10.36%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 33.94. This indicates a premium in contrast to its industry's Forward P/E of 32.41.
Meanwhile, ADBE's PEG ratio is currently 2.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Adobe Systems (ADBE) Fell More Than Broader Market
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $601.89, marking a -1.63% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.37% for the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 1.8%.
Shares of the software maker witnessed a gain of 2.56% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.88% and the S&P 500's gain of 5.1%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.38, marking a 15.26% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.08 billion, up 9.24% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.03 per share and a revenue of $21.42 billion, signifying shifts of +12.2% and +10.36%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 33.94. This indicates a premium in contrast to its industry's Forward P/E of 32.41.
Meanwhile, ADBE's PEG ratio is currently 2.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.