Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
Adobe Systems (ADBE) closed at $232.68 in the latest trading session, marking a +1.49% move from the prior day. This change outpaced the S&P 500's 0.97% gain on the day. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.
Prior to today's trading, shares of the software maker had lost 6.08% over the past month. This has lagged the Computer and Technology sector's loss of 2.56% and the S&P 500's loss of 3.04% in that time.
ADBE will be looking to display strength as it nears its next earnings release, which is expected to be March 21, 2019. The company is expected to report EPS of $1.61, up 3.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, up 22.28% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $7.77 per share and revenue of $11.15 billion. These results would represent year-over-year changes of +14.94% and +23.43%, respectively.
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. 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. 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.
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 5.57% lower. ADBE currently has a Zacks Rank of #3 (Hold).
Investors should also note ADBE's current valuation metrics, including its Forward P/E ratio of 29.5. For comparison, its industry has an average Forward P/E of 26.22, which means ADBE is trading at a premium to the group.
Investors should also note that ADBE has a PEG ratio of 1.8 right now. 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 was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 33% 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.
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 Systems Incorporated (ADBE) : Free Stock Analysis Report
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