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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $247.90, moving -5.9% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.66%. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 2.78%.
The software maker's shares have seen an increase of 24.86% over the last month, surpassing the Computer and Technology sector's loss of 7.65% and the S&P 500's loss of 1.49%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $6.08, signifying a 14.50% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.69 billion, indicating a 11.75% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.31 per share and revenue of $26.56 billion, which would represent changes of +16.09% and +11.74%, 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0% decrease. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 10.84. This denotes a discount relative to the industry average Forward P/E of 16.53.
It is also worth noting that ADBE currently has a PEG ratio of 0.72. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.39.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% 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.
View the Zacks #1 Rank List
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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $247.90, moving -5.9% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.66%. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 2.78%.
The software maker's shares have seen an increase of 24.86% over the last month, surpassing the Computer and Technology sector's loss of 7.65% and the S&P 500's loss of 1.49%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $6.08, signifying a 14.50% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.69 billion, indicating a 11.75% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.31 per share and revenue of $26.56 billion, which would represent changes of +16.09% and +11.74%, 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0% decrease. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 10.84. This denotes a discount relative to the industry average Forward P/E of 16.53.
It is also worth noting that ADBE currently has a PEG ratio of 0.72. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.39.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% 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.