Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
In the latest trading session, Adobe Systems (ADBE) closed at $348.72, marking a +0.58% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 1.58%.
Prior to today's trading, shares of the software maker had lost 4.05% over the past month. This has lagged the Computer and Technology sector's gain of 0.99% and the S&P 500's gain of 0.84% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release, which is expected to be March 15, 2023. On that day, Adobe Systems is projected to report earnings of $3.66 per share, which would represent year-over-year growth of 8.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, up 8.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $19.19 billion, which would represent changes of +11.31% and +9.01%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Adobe Systems. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 22.72. For comparison, its industry has an average Forward P/E of 27.31, which means Adobe Systems is trading at a discount to the group.
It is also worth noting that ADBE currently has a PEG ratio of 1.72. 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 2.06 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 90, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Inc. (ADBE) : Free Stock Analysis Report
