In the latest trading session, Adobe Systems (ADBE) closed at $354.91, marking a -2.29% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 0.44%.
Prior to today's trading, shares of the software maker had lost 1.69% lagged the Computer and Technology sector's gain of 1.65% and the S&P 500's gain of 0.87%.
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 11, 2025. The company is forecasted to report an EPS of $5.17, showcasing a 11.18% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $5.9 billion, up 9.01% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.63 per share and a revenue of $23.55 billion, representing changes of +12% and +9.49%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 moved 0.02% lower. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 17.61. This valuation marks a discount compared to its industry average Forward P/E of 25.97.
It is also worth noting that ADBE currently has a PEG ratio of 1.41. 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. The average PEG ratio for the Computer - Software industry stood at 1.91 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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