In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $289.45, marking a +0.25% move from the previous day. This change outpaced the S&P 500's 0.32% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the software maker had lost 6.02% in the past month. In that same time, the Computer and Technology sector lost 6.27%, while the S&P 500 lost 4.64%.
Investors will be hoping for strength from ADBE as it approaches its next earnings release, which is expected to be September 17, 2019. On that day, ADBE is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 13.87%. Meanwhile, our latest consensus estimate is calling for revenue of $2.81 billion, up 22.66% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $7.81 per share and revenue of $11.17 billion. These results would represent year-over-year changes of +15.53% and +23.66%, respectively.
Any recent changes to analyst estimates for ADBE should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 remained stagnant within the past month. ADBE currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ADBE is currently trading at a Forward P/E ratio of 36.96. This represents a premium compared to its industry's average Forward P/E of 30.06.
It is also worth noting that ADBE currently has a PEG ratio of 2.11. 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. The Computer - Software industry currently had an average PEG ratio of 1.95 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 51, putting it in the top 20% 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.