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Why Adobe Systems (ADBE) Dipped More Than Broader Market Today
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Adobe Systems (ADBE - Free Report) closed the most recent trading day at $508.12, moving -1.2% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Meanwhile, the Dow experienced a drop of 1.12%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Heading into today, shares of the software maker had gained 1.9% over the past month, outpacing the Computer and Technology sector's loss of 3.16% and the S&P 500's loss of 2.65% in that time.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company's upcoming EPS is projected at $4.13, signifying a 14.72% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.01 billion, up 10.65% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.93 per share and a revenue of $19.37 billion, signifying shifts of +16.19% and +10.01%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.09% higher. Adobe Systems currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 32.29. This expresses a premium compared to the average Forward P/E of 26.52 of its industry.
It is also worth noting that ADBE currently has a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 2.09 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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Why Adobe Systems (ADBE) Dipped More Than Broader Market Today
Adobe Systems (ADBE - Free Report) closed the most recent trading day at $508.12, moving -1.2% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Meanwhile, the Dow experienced a drop of 1.12%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Heading into today, shares of the software maker had gained 1.9% over the past month, outpacing the Computer and Technology sector's loss of 3.16% and the S&P 500's loss of 2.65% in that time.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company's upcoming EPS is projected at $4.13, signifying a 14.72% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.01 billion, up 10.65% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.93 per share and a revenue of $19.37 billion, signifying shifts of +16.19% and +10.01%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.09% higher. Adobe Systems currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 32.29. This expresses a premium compared to the average Forward P/E of 26.52 of its industry.
It is also worth noting that ADBE currently has a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 2.09 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.