In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $346.90, marking a -1.27% move from the previous day. This change was narrower than the S&P 500's 1.57% loss on the day. At the same time, the Dow lost 1.57%, and the tech-heavy Nasdaq lost 1.89%.
Prior to today's trading, shares of the software maker had gained 6.09% over the past month. This has outpaced the Computer and Technology sector's gain of 6.01% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. On that day, ADBE is projected to report earnings of $2.23 per share, which would represent year-over-year growth of 30.41%. Meanwhile, our latest consensus estimate is calling for revenue of $3.04 billion, up 17.04% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $13.15 billion. These results would represent year-over-year changes of +24.52% and +17.68%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. ADBE is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 35.86. This valuation marks a premium compared to its industry's average Forward P/E of 33.54.
Also, we should mention that ADBE has a PEG ratio of 2.21. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.31 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 52, which puts it in the top 21% 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.