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Adobe Systems (ADBE) Rises As Market Takes a Dip: Key Facts

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The most recent trading session ended with Adobe Systems (ADBE - Free Report) standing at $532.15, reflecting a +0.21% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.93%.

Shares of the software maker witnessed a gain of 0.45% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.41% and the S&P 500's loss of 0.26%.

Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.53, reflecting a 10.76% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 9.72% from the prior-year quarter.

ADBE's full-year Zacks Consensus Estimates are calling for earnings of $18.16 per share and revenue of $21.45 billion. These results would represent year-over-year changes of +13.01% and +10.52%, respectively.

Investors should also note any recent changes to analyst estimates for Adobe Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 moved 0.04% higher. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).

In terms of valuation, Adobe Systems is presently being traded at a Forward P/E ratio of 29.24. This denotes no noticeable deviation relative to the industry's average Forward P/E of 29.24.

Investors should also note that ADBE has a PEG ratio of 2.24 right now. 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 average PEG ratio for the Computer - Software industry stood at 2.38 at the close of the market yesterday.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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