Adobe Systems (ADBE) closed the most recent trading day at $291.65, moving -2.65% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.72%.
Prior to today's trading, shares of the software maker had lost 14.4% lagged the Computer and Technology sector's gain of 1.88% and the S&P 500's gain of 0.78%.
The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. The company's upcoming EPS is projected at $5.88, signifying a 15.75% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.28 billion, up 9.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.47 per share and revenue of $26.04 billion, which would represent changes of +12.08% and +9.54%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, the Zacks Consensus EPS estimate has shifted 0.08% upward. Currently, Adobe Systems is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 12.77. This denotes a discount relative to the industry average Forward P/E of 21.32.
We can also see that ADBE currently has a PEG ratio of 0.95. 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 of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.81.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 39% 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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