Adobe Systems (ADBE) closed at $326.79 in the latest trading session, marking a +1.23% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.17%.
The stock of software maker has fallen by 3.74% in the past month, lagging the Computer and Technology sector's loss of 1.02% and the S&P 500's loss of 0.06%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on December 10, 2025. 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.
For the full year, the Zacks Consensus Estimates project earnings of $20.77 per share and a revenue of $23.67 billion, demonstrating changes of +12.76% and 0%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% decrease. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 13.72 right now. This signifies a discount in comparison to the average Forward P/E of 25.3 for its industry.
It's also important to note that ADBE currently trades at a PEG ratio of 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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