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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 $323.95 in the latest trading session, marking a +0.51% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq added 0.84%.
Prior to today's trading, shares of the software maker had lost 11.31% over the past month. This has lagged the Computer and Technology sector's loss of 1.67% and the S&P 500's loss of 2% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release, which is expected to be March 15, 2023. The company is expected to report EPS of $3.66, up 8.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.61 billion, up 8.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $19.19 billion, which would represent changes of +11.31% and +9.01%, respectively, from the prior year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 21.12. For comparison, its industry has an average Forward P/E of 26.79, which means Adobe Systems is trading at a discount to the group.
Meanwhile, ADBE's PEG ratio is currently 1.6. 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 2.06 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 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 $323.95 in the latest trading session, marking a +0.51% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq added 0.84%.
Prior to today's trading, shares of the software maker had lost 11.31% over the past month. This has lagged the Computer and Technology sector's loss of 1.67% and the S&P 500's loss of 2% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release, which is expected to be March 15, 2023. The company is expected to report EPS of $3.66, up 8.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.61 billion, up 8.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $19.19 billion, which would represent changes of +11.31% and +9.01%, respectively, from the prior year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 21.12. For comparison, its industry has an average Forward P/E of 26.79, which means Adobe Systems is trading at a discount to the group.
Meanwhile, ADBE's PEG ratio is currently 1.6. 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 2.06 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 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.