Adobe Systems (ADBE - Free Report) closed the most recent trading day at $238.74, moving +0.87% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq 0%.
Coming into today, shares of the software maker had lost 0.56% in the past month. In that same time, the Computer and Technology sector lost 5.26%, while the S&P 500 lost 1.27%.
Investors will be hoping for strength from ADBE as it approaches 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, our latest consensus estimate is calling for revenue of $2.42 billion, up 20.8% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $6.80 per share and revenue of $8.99 billion. These results would represent year-over-year changes of +57.77% and +23.11%, respectively.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. ADBE currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ADBE has a Forward P/E ratio of 34.8 right now. For comparison, its industry has an average Forward P/E of 30.55, which means ADBE is trading at a premium to the group.
Also, we should mention that ADBE has a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADBE's industry had an average PEG ratio of 2.08 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 82, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.