In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $303.91, marking a +0.38% move from the previous day. This move outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the software maker had gained 9.1% over the past month. This has outpaced the Computer and Technology sector's gain of 1.57% and the S&P 500's gain of 1.77% in that time.
ADBE will be looking to display strength as it nears its next earnings release. In that report, analysts expect ADBE to post earnings of $2.26 per share. This would mark year-over-year growth of 23.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 20.5% from the year-ago period.
Investors should also note any recent changes to analyst estimates for ADBE. Recent revisions tend to reflect the latest near-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. 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 0.76% higher within the past month. ADBE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 31.02. For comparison, its industry has an average Forward P/E of 31.02, which means ADBE is trading at a no noticeable deviation to the group.
Also, we should mention that ADBE has a PEG ratio of 1.91. 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 was holding an average PEG ratio of 2.27 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.