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Adobe Systems (ADBE) Stock Moves -0.05%: What You Should Know

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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $375.07, moving -0.05% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the software maker had lost 8.72% in the past month. In that same time, the Computer and Technology sector lost 3.81%, while the S&P 500 lost 2.28%.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $4.44 billion, up 12.71% from the prior-year quarter.

ADBE's full-year Zacks Consensus Estimates are calling for earnings of $13.51 per share and revenue of $17.68 billion. These results would represent year-over-year changes of +8.25% and +12.03%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 27.78 right now. This represents a premium compared to its industry's average Forward P/E of 27.04.

We can also see that ADBE currently has a PEG ratio of 1.68. 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 was holding an average PEG ratio of 2.06 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 157, which puts it in the bottom 38% 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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