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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
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Adobe Systems (ADBE - Free Report) closed at $368.30 in the latest trading session, marking a +0.04% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%.
Heading into today, shares of the software maker had lost 15.24% over the past month, lagging the Computer and Technology sector's loss of 9.08% and the S&P 500's loss of 5.13% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.50 per share and revenue of $17.68 billion. These totals would mark changes of +8.17% and +12.03%, respectively, from last 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 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. 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 has moved 0.05% lower. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 27.26 right now. This represents a premium compared to its industry's average Forward P/E of 26.55.
Meanwhile, ADBE's PEG ratio is currently 1.65. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.02 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 147, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Adobe Systems (ADBE) Gains As Market Dips: What You Should Know
Adobe Systems (ADBE - Free Report) closed at $368.30 in the latest trading session, marking a +0.04% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%.
Heading into today, shares of the software maker had lost 15.24% over the past month, lagging the Computer and Technology sector's loss of 9.08% and the S&P 500's loss of 5.13% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.50 per share and revenue of $17.68 billion. These totals would mark changes of +8.17% and +12.03%, respectively, from last 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 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. 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 has moved 0.05% lower. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 27.26 right now. This represents a premium compared to its industry's average Forward P/E of 26.55.
Meanwhile, ADBE's PEG ratio is currently 1.65. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.02 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 147, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.