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Adobe Systems (ADBE) Stock Declines While Market Improves: Some Information for Investors
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In the latest close session, Adobe Systems (ADBE - Free Report) was down 1.49% at $244.45. The stock's change was less than the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 1.79%, while the tech-heavy Nasdaq appreciated by 1.52%.
The stock of software maker has risen by 0.88% in the past month, lagging the Computer and Technology sector's gain of 8.24% and the S&P 500's gain of 5.15%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. In that report, analysts expect Adobe Systems to post earnings of $5.83 per share. This would mark year-over-year growth of 15.22%. Alongside, our most recent consensus estimate is anticipating revenue of $6.46 billion, indicating a 9.94% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $23.51 per share and a revenue of $26.06 billion, representing changes of +12.27% and +9.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 10.56 right now. This valuation marks a discount compared to its industry average Forward P/E of 16.24.
Meanwhile, ADBE's PEG ratio is currently 0.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.53.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 25% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Adobe Systems (ADBE) Stock Declines While Market Improves: Some Information for Investors
In the latest close session, Adobe Systems (ADBE - Free Report) was down 1.49% at $244.45. The stock's change was less than the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 1.79%, while the tech-heavy Nasdaq appreciated by 1.52%.
The stock of software maker has risen by 0.88% in the past month, lagging the Computer and Technology sector's gain of 8.24% and the S&P 500's gain of 5.15%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. In that report, analysts expect Adobe Systems to post earnings of $5.83 per share. This would mark year-over-year growth of 15.22%. Alongside, our most recent consensus estimate is anticipating revenue of $6.46 billion, indicating a 9.94% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $23.51 per share and a revenue of $26.06 billion, representing changes of +12.27% and +9.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 10.56 right now. This valuation marks a discount compared to its industry average Forward P/E of 16.24.
Meanwhile, ADBE's PEG ratio is currently 0.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.53.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 25% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.