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Adobe Systems (ADBE) Registers a Bigger Fall Than the Market: Important Facts to Note
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Adobe Systems (ADBE - Free Report) ended the recent trading session at $245.48, demonstrating a -2.46% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 2.15%.
Prior to today's trading, shares of the software maker had lost 0.4% lagged the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is expected to report EPS of $6.32, up 14.91% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.84 billion, indicating a 10.38% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.47 per share and revenue of $26.6 billion, which would represent changes of +16.86% and +11.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained unchanged. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 10.29. Its industry sports an average Forward P/E of 16.78, so one might conclude that Adobe Systems is trading at a discount comparatively.
One should further note that ADBE currently holds 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. ADBE's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% of all 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.
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) Registers a Bigger Fall Than the Market: Important Facts to Note
Adobe Systems (ADBE - Free Report) ended the recent trading session at $245.48, demonstrating a -2.46% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.09% for the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 2.15%.
Prior to today's trading, shares of the software maker had lost 0.4% lagged the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is expected to report EPS of $6.32, up 14.91% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.84 billion, indicating a 10.38% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.47 per share and revenue of $26.6 billion, which would represent changes of +16.86% and +11.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained unchanged. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 10.29. Its industry sports an average Forward P/E of 16.78, so one might conclude that Adobe Systems is trading at a discount comparatively.
One should further note that ADBE currently holds 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. ADBE's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.