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Adobe Systems (ADBE) Outperforms Broader Market: What You Need to Know

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In the latest market close, Adobe Systems (ADBE - Free Report) reached $484.69, with a +0.26% movement compared to the previous day. This change outpaced the S&P 500's 0.09% gain on the day. Meanwhile, the Dow experienced a drop of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.65%.

The the stock of software maker has risen by 3.96% in the past month, lagging the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 5.78%.

The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is scheduled to release its earnings on June 13, 2024. In that report, analysts expect Adobe Systems to post earnings of $4.39 per share. This would mark year-over-year growth of 12.28%. In the meantime, our current consensus estimate forecasts the revenue to be $5.28 billion, indicating a 9.65% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $17.96 per share and revenue of $21.42 billion, which would represent changes of +11.76% and +10.37%, respectively, from the prior year.

Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Adobe Systems holds a Zacks Rank of #4 (Sell).

Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 26.92. This signifies a discount in comparison to the average Forward P/E of 29.22 for its industry.

Also, we should mention that ADBE has a PEG ratio of 2.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.45.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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