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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
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Adobe Systems (ADBE - Free Report) closed at $237.54 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 1.55%, and the Nasdaq, a tech-heavy index, added 1.27%.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. This is expected to be December 13, 2018. The company is expected to report EPS of $1.88, up 49.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 20.8% 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 +23.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ADBE. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. ADBE is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ADBE has a Forward P/E ratio of 42.36 right now. For comparison, its industry has an average Forward P/E of 38.32, which means ADBE is trading at a premium to the group.
Investors should also note that ADBE has a PEG ratio of 2.58 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. ADBE's industry had an average PEG ratio of 2.63 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 103, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
Adobe Systems (ADBE - Free Report) closed at $237.54 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 1.55%, and the Nasdaq, a tech-heavy index, added 1.27%.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. This is expected to be December 13, 2018. The company is expected to report EPS of $1.88, up 49.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 20.8% 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 +23.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ADBE. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. ADBE is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ADBE has a Forward P/E ratio of 42.36 right now. For comparison, its industry has an average Forward P/E of 38.32, which means ADBE is trading at a premium to the group.
Investors should also note that ADBE has a PEG ratio of 2.58 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. ADBE's industry had an average PEG ratio of 2.63 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 103, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.