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Adobe Systems (ADBE) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest close session, Adobe Systems (ADBE - Free Report) was down 2.62% at $296.12. The stock's change was less than the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.06%.
The software maker's shares have seen a decrease of 14.54% over the last month, not keeping up with the Computer and Technology sector's gain of 2.88% and the S&P 500's gain of 1.99%.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company is predicted to post an EPS of $5.88, indicating a 15.75% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.28 billion, indicating a 9.88% increase compared to the same quarter of the previous year.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $23.44 per share and revenue of $26.03 billion. These results would represent year-over-year changes of +11.94% and +9.5%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 12.97. This signifies a discount in comparison to the average Forward P/E of 22.22 for its industry.
Meanwhile, ADBE's PEG ratio is currently 0.97. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Adobe Systems (ADBE) Suffers a Larger Drop Than the General Market: Key Insights
In the latest close session, Adobe Systems (ADBE - Free Report) was down 2.62% at $296.12. The stock's change was less than the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.06%.
The software maker's shares have seen a decrease of 14.54% over the last month, not keeping up with the Computer and Technology sector's gain of 2.88% and the S&P 500's gain of 1.99%.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company is predicted to post an EPS of $5.88, indicating a 15.75% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.28 billion, indicating a 9.88% increase compared to the same quarter of the previous year.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $23.44 per share and revenue of $26.03 billion. These results would represent year-over-year changes of +11.94% and +9.5%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 12.97. This signifies a discount in comparison to the average Forward P/E of 22.22 for its industry.
Meanwhile, ADBE's PEG ratio is currently 0.97. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.