In the latest trading session, Adobe Systems (ADBE) closed at $485.03, marking a -1.64% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.92%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 1.6%.
Heading into today, shares of the software maker had lost 5.91% over the past month, lagging the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.68% in that time.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.66, reflecting a 9.13% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.54 billion, indicating a 9.71% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.28 per share and a revenue of $21.44 billion, representing changes of +13.75% and +10.46%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. Adobe Systems currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 26.98. This represents a discount compared to its industry's average Forward P/E of 29.68.
It's also important to note that ADBE currently trades at a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.46 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpAdobe Inc. (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
