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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $362.52, moving +1.79% from the previous trading session. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.92%, while the tech-heavy Nasdaq added 0.51%.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.34, up 27.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.17 billion, up 15.65% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $9.79 per share and revenue of $12.99 billion. These results would represent year-over-year changes of +24.4% and +16.25%, respectively.
It is also important to note the 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADBE currently has a Zacks Rank of #2 (Buy).
In terms of valuation, ADBE is currently trading at a Forward P/E ratio of 36.38. Its industry sports an average Forward P/E of 29.62, so we one might conclude that ADBE is trading at a premium comparatively.
It is also worth noting that ADBE currently has a PEG ratio of 2.27. 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 2.66 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 68, putting it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $362.52, moving +1.79% from the previous trading session. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.92%, while the tech-heavy Nasdaq added 0.51%.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.34, up 27.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.17 billion, up 15.65% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $9.79 per share and revenue of $12.99 billion. These results would represent year-over-year changes of +24.4% and +16.25%, respectively.
It is also important to note the 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADBE currently has a Zacks Rank of #2 (Buy).
In terms of valuation, ADBE is currently trading at a Forward P/E ratio of 36.38. Its industry sports an average Forward P/E of 29.62, so we one might conclude that ADBE is trading at a premium comparatively.
It is also worth noting that ADBE currently has a PEG ratio of 2.27. 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 2.66 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 68, putting it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.