In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $369.47, marking a +1.14% move from the previous day. This change lagged the S&P 500's 3.15% gain on the day. Meanwhile, the Dow gained 3.85%, and the Nasdaq, a tech-heavy index, added 2.44%.
Coming into today, shares of the software maker had gained 6.59% in the past month. In that same time, the Computer and Technology sector gained 5.44%, while the S&P 500 gained 0.38%.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.35, up 28.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.17 billion, up 15.65% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $9.79 per share and revenue of $12.98 billion. These results would represent year-over-year changes of +24.4% and +16.19%, respectively.
Investors should also note any recent changes to analyst estimates for ADBE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. ADBE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 37.33. This represents a premium compared to its industry's average Forward P/E of 28.09.
Investors should also note that ADBE has a PEG ratio of 2.33 right now. 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. The Computer - Software was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.