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Here's Why Adobe Systems (ADBE) Gained But Lagged the Market Today
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In the latest market close, Adobe Systems (ADBE - Free Report) reached $535.22, with a +0.81% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.69% for the day. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.
Heading into today, shares of the software maker had lost 6.15% over the past month, outpacing the Computer and Technology sector's loss of 9.75% and lagging the S&P 500's loss of 4.78% in that time.
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 September 12, 2024. On that day, Adobe Systems is projected to report earnings of $4.53 per share, which would represent year-over-year growth of 10.76%. Simultaneously, our latest consensus estimate expects the revenue to be $5.37 billion, showing a 9.72% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.16 per share and revenue of $21.45 billion, indicating changes of +13.01% and +10.52%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 29.24 right now. This denotes a discount relative to the industry's average Forward P/E of 29.54.
It's also important to note that ADBE currently trades at a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Adobe Systems (ADBE) Gained But Lagged the Market Today
In the latest market close, Adobe Systems (ADBE - Free Report) reached $535.22, with a +0.81% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.69% for the day. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.
Heading into today, shares of the software maker had lost 6.15% over the past month, outpacing the Computer and Technology sector's loss of 9.75% and lagging the S&P 500's loss of 4.78% in that time.
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 September 12, 2024. On that day, Adobe Systems is projected to report earnings of $4.53 per share, which would represent year-over-year growth of 10.76%. Simultaneously, our latest consensus estimate expects the revenue to be $5.37 billion, showing a 9.72% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.16 per share and revenue of $21.45 billion, indicating changes of +13.01% and +10.52%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 29.24 right now. This denotes a discount relative to the industry's average Forward P/E of 29.54.
It's also important to note that ADBE currently trades at a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.