Adobe Systems (ADBE) closed the most recent trading day at $306.87, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.62% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.74%.
Heading into today, shares of the software maker had gained 2.64% over the past month, lagging the Computer and Technology sector's gain of 3.47% and the S&P 500's gain of 2.8% in that time.
Investors will be hoping for strength from ADBE as it approaches its nex t earnings release. In tha t report , analysts expect ADBE to post earnings of $1.97 per share. This would mark year-over-year growth of 13.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 22.65% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $7.81 per share and revenue of $11.17 billion. These results would represent year-over-year changes of +15.53% and +23.66%, respectively.
Any recent changes to analyst estimates for ADBE should also be noted by investors. 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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. ADBE is currently a Zacks Rank #3 (Hold).
Digging into valuation, ADBE currently has a Forward P/E ratio of 39.69. For comparison, its industry has an average Forward P/E of 29.85, which means ADBE is trading at a premium to the group.
Also, we should mention that ADBE has a PEG ratio of 2.27. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
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 includes is listed in order 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.
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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