Adobe Systems (ADBE) closed at $333.26 in the latest trading session, marking a +1.22% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.52%.
Shares of the software maker have depreciated by 10.4% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.01%, and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. On that day, Adobe Systems is projected to report earnings of $5.39 per share, which would represent year-over-year growth of 12.06%. Our most recent consensus estimate is calling for quarterly revenue of $6.1 billion, up 8.85% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.77 per share and revenue of $23.67 billion, indicating changes of +12.76% and +10.06%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 15.85. This valuation marks a discount compared to its industry average Forward P/E of 27.39.
Meanwhile, ADBE's PEG ratio is currently 1.21. 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 Computer - Software industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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