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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 at $513.78 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the software maker had gained 3.14% over the past month, outpacing the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. In that report, analysts expect Adobe Systems to post earnings of $3.97 per share. This would mark year-over-year growth of 16.76%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 9.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.70 per share and revenue of $19.31 billion. These totals would mark changes of +14.51% and +9.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 33.16. This represents a premium compared to its industry's average Forward P/E of 28.48.
Also, we should mention that ADBE has a PEG ratio of 2.5. 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 2.4 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.
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 at $513.78 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the software maker had gained 3.14% over the past month, outpacing the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.
Adobe Systems will be looking to display strength as it nears its next earnings release. In that report, analysts expect Adobe Systems to post earnings of $3.97 per share. This would mark year-over-year growth of 16.76%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 9.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.70 per share and revenue of $19.31 billion. These totals would mark changes of +14.51% and +9.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 33.16. This represents a premium compared to its industry's average Forward P/E of 28.48.
Also, we should mention that ADBE has a PEG ratio of 2.5. 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 2.4 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.