Adobe Systems (ADBE) closed the most recent trading day at $275.45, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the software maker had gained 4.86% over the past month, lagging the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 4.87% in that time.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. On that day, ADBE is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 7.23%. Meanwhile, our latest consensus estimate is calling for revenue of $2.70 billion, up 22.99% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $7.81 per share and revenue of $11.15 billion. These results would represent year-over-year changes of +15.53% and +23.45%, respectively.
Any recent changes to analyst estimates for ADBE should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. 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 35.64. Its industry sports an average Forward P/E of 31.19, so we one might conclude that ADBE is trading at a premium comparatively.
Also, we should mention that ADBE has a PEG ratio of 2.17. 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 industry currently had an average PEG ratio of 2.26 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 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 Incorporated (ADBE) : Free Stock Analysis Report
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