We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adobe Systems (ADBE) Stock Sinks As Market Gains: Here's Why
Read MoreHide Full Article
Adobe Systems (ADBE - Free Report) closed at $246.14 in the latest trading session, marking a -2.12% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.83%.
The stock of software maker has risen by 5.31% in the past month, leading the Computer and Technology sector's loss of 13.14% and the S&P 500's loss of 2.29%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. In that report, analysts expect Adobe Systems to post earnings of $6.32 per share. This would mark year-over-year growth of 14.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.84 billion, up 10.38% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $24.47 per share and a revenue of $26.6 billion, indicating changes of +16.86% and +11.92%, respectively, from the former year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 10.28. This denotes a discount relative to the industry average Forward P/E of 18.6.
Also, we should mention that ADBE has a PEG ratio of 0.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Adobe Systems (ADBE) Stock Sinks As Market Gains: Here's Why
Adobe Systems (ADBE - Free Report) closed at $246.14 in the latest trading session, marking a -2.12% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.83%.
The stock of software maker has risen by 5.31% in the past month, leading the Computer and Technology sector's loss of 13.14% and the S&P 500's loss of 2.29%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. In that report, analysts expect Adobe Systems to post earnings of $6.32 per share. This would mark year-over-year growth of 14.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.84 billion, up 10.38% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $24.47 per share and a revenue of $26.6 billion, indicating changes of +16.86% and +11.92%, respectively, from the former year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 10.28. This denotes a discount relative to the industry average Forward P/E of 18.6.
Also, we should mention that ADBE has a PEG ratio of 0.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.