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Adobe Systems (ADBE) Beats Stock Market Upswing: What Investors Need to Know
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Adobe Systems (ADBE - Free Report) closed at $627.91 in the latest trading session, marking a +1.64% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.25% for the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 1.3%.
The software maker's shares have seen an increase of 8.04% over the last month, surpassing the Computer and Technology sector's gain of 2.42% and the S&P 500's gain of 1.58%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's upcoming EPS is projected at $4.38, signifying a 15.26% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.08 billion, up 9.24% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.03 per share and a revenue of $21.42 billion, signifying shifts of +12.2% and +10.36%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 34.27. This expresses a premium compared to the average Forward P/E of 33.88 of its industry.
We can also see that ADBE currently has a PEG ratio of 2.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 2.33 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Adobe Systems (ADBE) Beats Stock Market Upswing: What Investors Need to Know
Adobe Systems (ADBE - Free Report) closed at $627.91 in the latest trading session, marking a +1.64% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.25% for the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 1.3%.
The software maker's shares have seen an increase of 8.04% over the last month, surpassing the Computer and Technology sector's gain of 2.42% and the S&P 500's gain of 1.58%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's upcoming EPS is projected at $4.38, signifying a 15.26% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.08 billion, up 9.24% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.03 per share and a revenue of $21.42 billion, signifying shifts of +12.2% and +10.36%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 34.27. This expresses a premium compared to the average Forward P/E of 33.88 of its industry.
We can also see that ADBE currently has a PEG ratio of 2.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 2.33 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.