Adobe Systems (ADBE) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Adobe Systems (ADBE) closed at $515.48, marking a -0.36% move from the previous day. This move lagged the S&P 500's daily loss of 0.09%.
Coming into today, shares of the software maker had gained 11.14% in the past month. In that same time, the Computer and Technology sector gained 10.43%, while the S&P 500 gained 5.45%.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. In that report, analysts expect ADBE to post earnings of $2.81 per share. This would mark year-over-year growth of 14.69%. Our most recent consensus estimate is calling for quarterly revenue of $3.73 billion, up 19.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.88 per share and revenue of $15.46 billion. These totals would mark changes of +17.62% and +20.13%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 remained stagnant. ADBE currently has a Zacks Rank of #2 (Buy).
Digging into valuation, ADBE currently has a Forward P/E ratio of 43.54. This represents a premium compared to its industry's average Forward P/E of 40.96.
Meanwhile, ADBE's PEG ratio is currently 2.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADBE's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 45% 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.
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