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Adobe Systems (ADBE) closed at $485.19 in the latest trading session, marking a +1.21% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.87%.
Heading into today, shares of the software maker had lost 5.27% over the past month, lagging the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 1.61% 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 $2.81 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.88 per share and revenue of $15.49 billion, which would represent changes of +17.62% and +20.4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ADBE. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADBE is currently a Zacks Rank #2 (Buy).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 40.34. Its industry sports an average Forward P/E of 34.89, so we one might conclude that ADBE is trading at a premium comparatively.
Also, we should mention that ADBE has a PEG ratio of 2.2. 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. The Computer - Software industry currently had an average PEG ratio of 2.33 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 166, which puts it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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