Adobe Systems (ADBE) closed the most recent trading day at $335.37, moving -0.42% from the previous trading session. This change lagged the S&P 500’s daily loss of 0.05%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the software maker had gained 10.09% over the past month, lagging the Computer and Technology sector’s gain of 21.05% and the S&P 500’s gain of 21.82% in that time.
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 $2.34, up 27.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.17 billion, up 15.65% from the year-ago period.
ADBE’s full-year Zacks Consensus Estimates are calling for earnings of $9.79 per share and revenue of $12.99 billion. These results would represent year-over-year changes of +24.4% and +16.25%, respectively.
Investors should also note any recent changes to analyst estimates for ADBE. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. ADBE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ADBE is holding a Forward P/E ratio of 34.4. This valuation marks a premium compared to its industry’s average Forward P/E of 28.32.
Investors should also note that ADBE has a PEG ratio of 2.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Computer – Software stocks are, on average, holding a PEG ratio of 2.58 based on yesterday’s closing prices.
The Computer – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
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.
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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