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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
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Adobe Systems (ADBE - Free Report) closed at $475.95 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.75%.
Shares of the software maker have appreciated by 2.77% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.47% and the S&P 500's gain of 2%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 13, 2024. The company is expected to report EPS of $4.39, up 12.28% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.28 billion, indicating a 9.65% increase compared to the same quarter of the previous year.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $17.96 per share and revenue of $21.42 billion. These results would represent year-over-year changes of +11.76% and +10.37%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 26.9. This valuation marks a discount compared to its industry's average Forward P/E of 28.22.
It's also important to note that ADBE currently trades at a PEG ratio of 2.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Adobe Systems (ADBE) Stock Sinks As Market Gains: What You Should Know
Adobe Systems (ADBE - Free Report) closed at $475.95 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.75%.
Shares of the software maker have appreciated by 2.77% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.47% and the S&P 500's gain of 2%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 13, 2024. The company is expected to report EPS of $4.39, up 12.28% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.28 billion, indicating a 9.65% increase compared to the same quarter of the previous year.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $17.96 per share and revenue of $21.42 billion. These results would represent year-over-year changes of +11.76% and +10.37%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 26.9. This valuation marks a discount compared to its industry's average Forward P/E of 28.22.
It's also important to note that ADBE currently trades at a PEG ratio of 2.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.