In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $263.51, marking a -1.1% move from the previous day. The stock lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.26%.
Prior to today's trading, shares of the software maker had gained 5.63% over the past month. This has outpaced the Computer and Technology sector's gain of 5.38% and the S&P 500's gain of 3.23% in that time.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. This is expected to be September 18, 2018. The company is expected to report EPS of $1.69, up 53.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.25 billion, up 22.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.70 per share and revenue of $8.92 billion. These totals would mark changes of +55.45% and +22.14%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ADBE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained stagnant. ADBE is currently a Zacks Rank #3 (Hold).
In terms of valuation, ADBE is currently trading at a Forward P/E ratio of 47.53. For comparison, its industry has an average Forward P/E of 42.86, which means ADBE is trading at a premium to the group.
Also, we should mention that ADBE has a PEG ratio of 2.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ADBE's industry had an average PEG ratio of 3.03 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 49, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.