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Adobe Systems (ADBE) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $238.98, moving -6.63% from the previous trading session. This change lagged the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq decreased by 0.89%.
Shares of the software maker have appreciated by 7.88% over the course of the past month, underperforming the Computer and Technology sector's gain of 14.93%, and the S&P 500's gain of 9.71%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company is forecasted to report an EPS of $5.83, showcasing a 15.22% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.46 billion, up 9.94% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.51 per share and revenue of $26.06 billion. These totals would mark changes of +12.27% and +9.64%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 10.89. Its industry sports an average Forward P/E of 16.62, so one might conclude that Adobe Systems is trading at a discount comparatively.
We can additionally observe that ADBE currently boasts a PEG ratio of 0.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 1.58 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Adobe Systems (ADBE) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $238.98, moving -6.63% from the previous trading session. This change lagged the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq decreased by 0.89%.
Shares of the software maker have appreciated by 7.88% over the course of the past month, underperforming the Computer and Technology sector's gain of 14.93%, and the S&P 500's gain of 9.71%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company is forecasted to report an EPS of $5.83, showcasing a 15.22% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.46 billion, up 9.94% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.51 per share and revenue of $26.06 billion. These totals would mark changes of +12.27% and +9.64%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 10.89. Its industry sports an average Forward P/E of 16.62, so one might conclude that Adobe Systems is trading at a discount comparatively.
We can additionally observe that ADBE currently boasts a PEG ratio of 0.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 1.58 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.