Adobe Systems (ADBE) Dips More Than Broader Markets: What You Should Know
Adobe Systems (ADBE) closed at $326.78 in the latest trading session, marking a -0.67% move from the prior day. This change lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the software maker had gained 3.29% over the past month. This has outpaced the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 1.83% in that time.
Wall Street will be looking for positivity from Adobe Systems as it approaches its next earnings report date. This is expected to be December 15, 2022. The company is expected to report EPS of $3.50, up 9.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.52 billion, up 10.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.62 per share and revenue of $17.6 billion. These totals would mark changes of +9.13% and +11.52%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Adobe Systems is currently a Zacks Rank #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 24.16. This valuation marks a discount compared to its industry's average Forward P/E of 24.79.
We can also see that ADBE currently has a PEG ratio of 1.89. 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 2.16 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 127, putting it in the top 50% 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.
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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Adobe Inc. (ADBE) : Free Stock Analysis Report
