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Why Adobe Systems (ADBE) Outpaced the Stock Market Today
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Adobe Systems (ADBE - Free Report) ended the recent trading session at $265.15, demonstrating a +1.89% change from the preceding day's closing price. This change outpaced the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 1.3%.
Prior to today's trading, shares of the software maker had gained 16.88% outpaced the Computer and Technology sector's loss of 0.09% and the S&P 500's gain of 2.3%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company is predicted to post an EPS of $6.08, indicating a 14.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 11.75% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.31 per share and a revenue of $26.56 billion, representing changes of +16.09% and +11.74%, respectively, from the prior year.
Investors should also note any 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0% fall in the Zacks Consensus EPS estimate. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 10.7. Its industry sports an average Forward P/E of 17.86, so one might conclude that Adobe Systems is trading at a discount comparatively.
It is also worth noting that ADBE currently has a PEG ratio of 0.71. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.61.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Why Adobe Systems (ADBE) Outpaced the Stock Market Today
Adobe Systems (ADBE - Free Report) ended the recent trading session at $265.15, demonstrating a +1.89% change from the preceding day's closing price. This change outpaced the S&P 500's 0.62% gain on the day. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 1.3%.
Prior to today's trading, shares of the software maker had gained 16.88% outpaced the Computer and Technology sector's loss of 0.09% and the S&P 500's gain of 2.3%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company is predicted to post an EPS of $6.08, indicating a 14.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, up 11.75% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.31 per share and a revenue of $26.56 billion, representing changes of +16.09% and +11.74%, respectively, from the prior year.
Investors should also note any 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0% fall in the Zacks Consensus EPS estimate. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 10.7. Its industry sports an average Forward P/E of 17.86, so one might conclude that Adobe Systems is trading at a discount comparatively.
It is also worth noting that ADBE currently has a PEG ratio of 0.71. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.61.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.