The latest trading session saw Adobe Systems (ADBE) ending at $343.22, denoting a -1.6% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 2.36%. On the other hand, the Dow registered a loss of 2.48%, and the technology-centric Nasdaq decreased by 2.55%.
Shares of the software maker have depreciated by 9.93% over the course of the past month, underperforming the Computer and Technology sector's loss of 8.4% and the S&P 500's loss of 5.6%.
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 June 12, 2025. The company's earnings per share (EPS) are projected to be $4.96, reflecting a 10.71% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $5.79 billion, indicating a 9.1% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.38 per share and a revenue of $23.45 billion, signifying shifts of +10.64% and +9.02%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.14% lower. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 17.12. This indicates a discount in contrast to its industry's Forward P/E of 23.59.
We can also see that ADBE currently has a PEG ratio of 1.38. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.1.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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