Adobe Systems (ADBE) closed the most recent trading day at $260.44, moving -1.34% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.14%.
The stock of software maker has fallen by 10.86% in the past month, lagging the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's earnings report is expected on March 12, 2026. On that day, Adobe Systems is projected to report earnings of $5.88 per share, which would represent year-over-year growth of 15.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.28 billion, up 9.92% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $23.47 per share and revenue of $26.04 billion, indicating changes of +12.08% and +9.54%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Adobe Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Adobe Systems is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 11.25. This represents a discount compared to its industry average Forward P/E of 16.78.
Meanwhile, ADBE's PEG ratio is currently 0.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ADBE's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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