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Adobe Systems (ADBE) Stock Sinks As Market Gains: Here's Why
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Adobe Systems (ADBE - Free Report) ended the recent trading session at $250.23, demonstrating a -2.11% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.46% for the day. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 2.03%.
The stock of software maker has risen by 6.45% in the past month, lagging the Computer and Technology sector's gain of 19.39% and the S&P 500's gain of 10.32%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. 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%. Simultaneously, our latest consensus estimate expects the revenue to be $6.46 billion, showing a 9.94% escalation compared to the year-ago quarter.
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.
It's also important for investors to be aware of any recent modifications to 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Adobe Systems is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 10.87 right now. This represents a discount compared to its industry average Forward P/E of 17.48.
It's also important to note that ADBE currently trades at 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.44.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Adobe Systems (ADBE) Stock Sinks As Market Gains: Here's Why
Adobe Systems (ADBE - Free Report) ended the recent trading session at $250.23, demonstrating a -2.11% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.46% for the day. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 2.03%.
The stock of software maker has risen by 6.45% in the past month, lagging the Computer and Technology sector's gain of 19.39% and the S&P 500's gain of 10.32%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. 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%. Simultaneously, our latest consensus estimate expects the revenue to be $6.46 billion, showing a 9.94% escalation compared to the year-ago quarter.
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.
It's also important for investors to be aware of any recent modifications to 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Adobe Systems is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 10.87 right now. This represents a discount compared to its industry average Forward P/E of 17.48.
It's also important to note that ADBE currently trades at 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.44.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.