In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $223.13, marking a -0.89% move from the previous day. This change lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the software maker had lost 9.62% over the past month. This has lagged the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 6.96% 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 March 21, 2019. In that report, analysts expect ADBE to post earnings of $1.63 per share. This would mark year-over-year growth of 5.16%. Our most recent consensus estimate is calling for quarterly revenue of $2.54 billion, up 22.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.76 per share and revenue of $11.15 billion, which would represent changes of +14.79% and +23.43%, respectively, from the prior 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. 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.
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. The Zacks Consensus EPS estimate has moved 5.9% lower within the past month. ADBE is currently a Zacks Rank #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 29.01. This represents a premium compared to its industry's average Forward P/E of 26.29.
It is also worth noting that ADBE currently has a PEG ratio of 1.77. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.98 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 89, which puts it in the top 35% 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.