Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE) closed at $488.50, marking a +1.01% move from the previous day. This move outpaced the S&P 500's daily gain of 0.35%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.37%.
Coming into today, shares of the software maker had gained 3.41% in the past month. In that same time, the Computer and Technology sector gained 5.54%, while the S&P 500 gained 4.32%.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. The company is expected to report EPS of $2.65, up 15.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.36 billion, up 12.33% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.94 per share and revenue of $12.79 billion, which would represent changes of +26.3% and +14.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ADBE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. ADBE is currently a Zacks Rank #3 (Hold).
Investors should also note ADBE's current valuation metrics, including its Forward P/E ratio of 48.65. This valuation marks a premium compared to its industry's average Forward P/E of 33.77.
We can also see that ADBE currently has a PEG ratio of 2.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.62 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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