Adobe Systems (ADBE - Free Report) closed the most recent trading day at $275.49, moving +1.95% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.73%, and the tech-heavy Nasdaq lost 0.11%.
Coming into today, shares of the software maker had gained 1.32% in the past month. In that same time, the Computer and Technology sector lost 0.17%, while the S&P 500 gained 0.73%.
ADBE will be looking to display strength as it nears its next earnings release, which is expected to be December 13, 2018. In that report, analysts expect ADBE to post earnings of $1.88 per share. This would mark year-over-year growth of 49.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 20.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.80 per share and revenue of $8.99 billion. These totals would mark changes of +57.77% and +23.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ADBE. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% higher. ADBE currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 39.72. This represents a premium compared to its industry's average Forward P/E of 35.66.
Investors should also note that ADBE has a PEG ratio of 2.42 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.