Adobe Systems (ADBE) closed the most recent trading day at $445.05, moving +0.17% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.24%.
Prior to today's trading, shares of the software maker had gained 0.85% over the past month. This has lagged the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.34% in that time.
Investors will be hoping for strength from ADBE as it approaches its next earnings release. In that report, analysts expect ADBE to post earnings of $2.40 per share. This would mark year-over-year growth of 17.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.15 billion, up 11.24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.77 per share and revenue of $12.71 billion, which would represent changes of +24.14% and +13.81%, respectively, from the prior year.
Any recent changes to analyst estimates for ADBE should also be noted by investors. 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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ADBE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 45.49. This valuation marks a premium compared to its industry's average Forward P/E of 32.71.
Investors should also note that ADBE has a PEG ratio of 2.84 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 industry currently had an average PEG ratio of 2.84 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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