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Adobe Systems (ADBE) Dips More Than Broader Markets: What You Should Know
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $365.76, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily loss of 0.73%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 7.92%.
Heading into today, shares of the software maker had gained 0.22% over the past month, lagging the Computer and Technology sector's gain of 6.56% and the S&P 500's gain of 0.5% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release, which is expected to be June 15, 2023. In that report, analysts expect Adobe Systems to post earnings of $3.78 per share. This would mark year-over-year growth of 12.84%. Meanwhile, our latest consensus estimate is calling for revenue of $4.76 billion, up 8.59% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $15.41 per share and revenue of $19.21 billion. These results would represent year-over-year changes of +12.4% and +9.14%, respectively.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Adobe Systems currently has a Zacks Rank of #4 (Sell).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 24.04. This represents a discount compared to its industry's average Forward P/E of 25.67.
Also, we should mention that ADBE has a PEG ratio of 1.8. 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. The Computer - Software industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Adobe Systems (ADBE) Dips More Than Broader Markets: What You Should Know
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $365.76, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily loss of 0.73%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 7.92%.
Heading into today, shares of the software maker had gained 0.22% over the past month, lagging the Computer and Technology sector's gain of 6.56% and the S&P 500's gain of 0.5% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release, which is expected to be June 15, 2023. In that report, analysts expect Adobe Systems to post earnings of $3.78 per share. This would mark year-over-year growth of 12.84%. Meanwhile, our latest consensus estimate is calling for revenue of $4.76 billion, up 8.59% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $15.41 per share and revenue of $19.21 billion. These results would represent year-over-year changes of +12.4% and +9.14%, respectively.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Adobe Systems currently has a Zacks Rank of #4 (Sell).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 24.04. This represents a discount compared to its industry's average Forward P/E of 25.67.
Also, we should mention that ADBE has a PEG ratio of 1.8. 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. The Computer - Software industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.