Adobe Systems (ADBE) Dips More Than Broader Markets: What You Should Know
Adobe Systems (ADBE) closed the most recent trading day at $273.55, moving -1.69% from the previous trading session. This change lagged the S&P 500's daily loss of 0.69%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the software maker had lost 3.8% over the past month, outpacing the Computer and Technology sector's loss of 7.49% and the S&P 500's loss of 4.53% in that time.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.78, up 7.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.70 billion, up 22.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.81 per share and revenue of $11.15 billion, which would represent changes of +15.53% and +23.45%, respectively, from the prior year.
Investors might also notice 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADBE is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ADBE is currently trading at a Forward P/E ratio of 35.61. This represents a premium compared to its industry's average Forward P/E of 30.16.
It is also worth noting that ADBE currently has a PEG ratio of 2.17. 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 2.22 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 108, which puts it in the top 43% 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.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
