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

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Adobe Systems (ADBE - Free Report) closed at $518.73 in the latest trading session, marking a +1.28% move from the prior day. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.27%.

Shares of the software maker witnessed a gain of 5.88% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.27% and the S&P 500's gain of 2.1%.

Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on December 11, 2024. The company's earnings per share (EPS) are projected to be $4.66, reflecting a 9.13% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.54 billion, indicating a 9.72% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.28 per share and a revenue of $21.44 billion, indicating changes of +13.75% and +10.46%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Adobe Systems is currently a Zacks Rank #3 (Hold).

With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 28.02. This signifies a discount in comparison to the average Forward P/E of 31.32 for its industry.

It's also important to note that ADBE currently trades at a PEG ratio of 2.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.53 as trading concluded yesterday.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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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