Adobe Systems Incorporated (ADBE - Free Report) announced an update to Adobe XD which will enhance the experience design on the UX/UI platform.
The company has introduced XD CC Starter plan which allows Adobe XD to combine both design and prototyping with industrial-grade performance by making it a cross-platform experience design platform.
The latest feature will allow users to share their experiences while designing and prototyping. Further, it will help designers, teams and students to learn, build and apply their designing skills.
Additionally, Adobe announced to finance $10 million as part of its ongoing investment in design community. The fund will be given in the form of grants and equity investments which will allow designers to leverage Adobe XD and integrate with Creative Cloud workflows.
We believe the latest move will help to bring in new users to the company’s design platform and improve the user base. This will fuel the company’s top line.
Coming to the price performance, shares of Adobe have returned 76.4% over a year, outperforming the industry’s rally of 33.7%.
The latest update integrates well with other features of Adobe XD like Sketch and Photoshop CC documents, password-protected Design Specs (Beta), simple drag-and-drop options to swap symbols and paste to multiple artboards. Also, it can be integrated into Dropbox, Zeplin, Avocode and Sympli.
With these features along with the starter plan, the company is aims to improve the workflows for Adobe XD. This will boost the adoption rate of the company which will aid revenue generation.
Robust Product Portfolio — Key Catalyst
The company’s products are experiencing robust demand. New and innovative products like Adobe Character Animator, Spark, Lightroom CC, Dimension and XD are bringing in more customers.
Recently, Adobe introduced Spark for Education for K-12 and higher education students at free of cost. This will drive the adoption rate of Adobe Spark for Education.
Further, the company rolled out major updates in its Adobe Creative Cloud. The updates include refining color, creating graphics and crafting audio, enhanced VR tools, improved collaboration, integration with Adobe Stock and advanced artificial intelligence.
Additionally, the company unveiled Experience Cloud Device Co-op which enhances customer engagement across devices and digital touch points, while protecting privacy and providing transparency.
Also, Adobe partnered with NVIDIA (NVDA - Free Report) to strengthen its new Sensei-powered services offering by expanding the Sensei ecosystem. This is aimed at catering to the needs of developers, data scientists and partners.
Hence, the company is likely to continue gain momentum in the market with its expanding and innovative product portfolio.
Zacks Rank & Stocks to Consider
Currently, Adobe carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider some better-ranked stocks like Citrix Systems (CTXS - Free Report) and SAP Se (SAP - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Citrix Systems and SAP Se is currently pegged at 9.05% and 7.21%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>