In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $277.93, marking a -0.17% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the software maker had gained 4.41% over the past month, outpacing the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 2.46% in that time.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. On that day, ADBE is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 23.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 20.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.84 per share and revenue of $11.15 billion. These totals would mark changes of +15.98% and +23.49%, respectively, from last year.
Any recent changes to analyst estimates for ADBE should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. ADBE is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ADBE is currently trading at a Forward P/E ratio of 35.52. For comparison, its industry has an average Forward P/E of 29.48, which means ADBE is trading at a premium to the group.
Also, we should mention that ADBE has a PEG ratio of 2.19. 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 2.22 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 80, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.