In the latest trading session, Adobe Systems (ADBE) closed at $308.73, marking a -0.5% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1%.
Heading into today, shares of the software maker had gained 7.46% over the past month, outpacing the Computer and Technology sector's gain of 3.84% and the S&P 500's gain of 2.68% 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 $1.97 per share, which would represent year-over-year growth of 13.87%. Meanwhile, our latest consensus estimate is calling for revenue of $2.81 billion, up 22.65% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $7.81 per share and revenue of $11.17 billion. These results would represent year-over-year changes of +15.53% and +23.66%, respectively.
Any recent changes to analyst estimates for ADBE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ADBE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 39.72. This valuation marks a premium compared to its industry's average Forward P/E of 31.
Meanwhile, ADBE's PEG ratio is currently 2.27. 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. ADBE's industry had an average PEG ratio of 2.13 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 86, putting it in the top 34% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.