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Adobe Systems (ADBE) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest market close, Adobe Systems (ADBE - Free Report) reached $476.57, with a +1.53% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.51%.
Heading into today, shares of the software maker had lost 5.56% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.2% in that time.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. It is anticipated that the company will report an EPS of $4.39, marking a 12.28% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.28 billion, up 9.65% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.96 per share and revenue of $21.42 billion, indicating changes of +11.76% and +10.37%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 a 0.1% decrease. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is presently being traded at a Forward P/E ratio of 26.14. This signifies a discount in comparison to the average Forward P/E of 28.52 for its industry.
Investors should also note that ADBE has a PEG ratio of 2.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.23 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Adobe Systems (ADBE) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, Adobe Systems (ADBE - Free Report) reached $476.57, with a +1.53% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.51%.
Heading into today, shares of the software maker had lost 5.56% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.2% in that time.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. It is anticipated that the company will report an EPS of $4.39, marking a 12.28% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.28 billion, up 9.65% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.96 per share and revenue of $21.42 billion, indicating changes of +11.76% and +10.37%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 a 0.1% decrease. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is presently being traded at a Forward P/E ratio of 26.14. This signifies a discount in comparison to the average Forward P/E of 28.52 for its industry.
Investors should also note that ADBE has a PEG ratio of 2.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.23 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.