We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adobe Systems (ADBE) Exceeds Market Returns: Some Facts to Consider
Read MoreHide Full Article
In the latest close session, Adobe Systems (ADBE - Free Report) was up +1.15% at $337.05. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the software maker had lost 0.81% over the past month, lagging the Computer and Technology sector's gain of 6.16% and the S&P 500's gain of 4.57%.
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 $5.39, up 12.06% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 8.85% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $20.77 per share and a revenue of $23.67 billion, demonstrating changes of +12.76% and +10.06%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 remained unchanged. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 16.04. Its industry sports an average Forward P/E of 24.04, so one might conclude that Adobe Systems is trading at a discount comparatively.
Investors should also note that ADBE has a PEG ratio of 1.22 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ADBE's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Adobe Systems (ADBE) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Adobe Systems (ADBE - Free Report) was up +1.15% at $337.05. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the software maker had lost 0.81% over the past month, lagging the Computer and Technology sector's gain of 6.16% and the S&P 500's gain of 4.57%.
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 $5.39, up 12.06% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 8.85% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $20.77 per share and a revenue of $23.67 billion, demonstrating changes of +12.76% and +10.06%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 remained unchanged. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 16.04. Its industry sports an average Forward P/E of 24.04, so one might conclude that Adobe Systems is trading at a discount comparatively.
Investors should also note that ADBE has a PEG ratio of 1.22 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ADBE's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.