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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $405.65, marking a -1.16% move from the previous day. This move lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the software maker had gained 8.21% over the past month, outpacing the Computer and Technology sector's gain of 4.21% and the S&P 500's gain of 4.36% in that time.
Wall Street will be looking for positivity from Adobe Systems as it approaches its next earnings report date. On that day, Adobe Systems is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 7.07%. Our most recent consensus estimate is calling for quarterly revenue of $4.44 billion, up 12.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.51 per share and revenue of $17.68 billion. These totals would mark changes of +8.25% and +12.03%, respectively, from last year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 30.38. For comparison, its industry has an average Forward P/E of 28.82, which means Adobe Systems is trading at a premium to the group.
Meanwhile, ADBE's PEG ratio is currently 1.84. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 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.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.
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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE - Free Report) closed at $405.65, marking a -1.16% move from the previous day. This move lagged the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the software maker had gained 8.21% over the past month, outpacing the Computer and Technology sector's gain of 4.21% and the S&P 500's gain of 4.36% in that time.
Wall Street will be looking for positivity from Adobe Systems as it approaches its next earnings report date. On that day, Adobe Systems is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 7.07%. Our most recent consensus estimate is calling for quarterly revenue of $4.44 billion, up 12.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.51 per share and revenue of $17.68 billion. These totals would mark changes of +8.25% and +12.03%, respectively, from last year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 30.38. For comparison, its industry has an average Forward P/E of 28.82, which means Adobe Systems is trading at a premium to the group.
Meanwhile, ADBE's PEG ratio is currently 1.84. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 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.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.