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Why Adobe Systems (ADBE) Outpaced the Stock Market Today
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In the latest close session, Adobe Systems (ADBE - Free Report) was up +1.04% at $246.10. The stock exceeded the S&P 500, which registered a gain of 1.02% for the day. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
The software maker's shares have seen an increase of 0.91% over the last month, not keeping up with the Computer and Technology sector's gain of 20.71% and the S&P 500's gain of 12.23%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. On that day, Adobe Systems is projected to report earnings of $5.83 per share, which would represent year-over-year growth of 15.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.46 billion, up 9.94% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $23.51 per share and revenue of $26.06 billion. These results would represent year-over-year changes of +12.27% and +9.64%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 10.36. This indicates a discount in contrast to its industry's Forward P/E of 15.71.
It's also important to note that ADBE currently trades at a PEG ratio of 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Adobe Systems (ADBE) Outpaced the Stock Market Today
In the latest close session, Adobe Systems (ADBE - Free Report) was up +1.04% at $246.10. The stock exceeded the S&P 500, which registered a gain of 1.02% for the day. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
The software maker's shares have seen an increase of 0.91% over the last month, not keeping up with the Computer and Technology sector's gain of 20.71% and the S&P 500's gain of 12.23%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. On that day, Adobe Systems is projected to report earnings of $5.83 per share, which would represent year-over-year growth of 15.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.46 billion, up 9.94% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $23.51 per share and revenue of $26.06 billion. These results would represent year-over-year changes of +12.27% and +9.64%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 10.36. This indicates a discount in contrast to its industry's Forward P/E of 15.71.
It's also important to note that ADBE currently trades at a PEG ratio of 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.