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Adobe Systems (ADBE) Rises As Market Takes a Dip: Key Facts
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $243.08, moving +1.9% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.41%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.91%.
The software maker's shares have seen a decrease of 5.22% over the last month, surpassing the Computer and Technology sector's loss of 11.52% and falling behind the S&P 500's loss of 2.64%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. The company is forecasted to report an EPS of $6.32, showcasing a 14.91% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.84 billion, up 10.38% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Adobe Systems is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 9.75. For comparison, its industry has an average Forward P/E of 17.5, which means Adobe Systems is trading at a discount to the group.
It's also important to note that ADBE currently trades at a PEG ratio of 0.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.41.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Adobe Systems (ADBE) Rises As Market Takes a Dip: Key Facts
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $243.08, moving +1.9% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.41%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.91%.
The software maker's shares have seen a decrease of 5.22% over the last month, surpassing the Computer and Technology sector's loss of 11.52% and falling behind the S&P 500's loss of 2.64%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. The company is forecasted to report an EPS of $6.32, showcasing a 14.91% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.84 billion, up 10.38% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Adobe Systems is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 9.75. For comparison, its industry has an average Forward P/E of 17.5, which means Adobe Systems is trading at a discount to the group.
It's also important to note that ADBE currently trades at a PEG ratio of 0.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.41.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.