In the latest close session, Adobe Systems (ADBE) was down 4.61% at $246.68. The stock trailed the S&P 500, which registered a daily loss of 1.04%. Elsewhere, the Dow lost 1.66%, while the tech-heavy Nasdaq lost 1.13%.
The software maker's stock has dropped by 14.1% in the past month, falling short of the Computer and Technology sector's gain of 0.34% and the S&P 500's gain of 1.75%.
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 March 12, 2026. The company's earnings per share (EPS) are projected to be $5.88, reflecting a 15.75% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.28 billion, up 9.92% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $23.47 per share and revenue of $26.04 billion. These results would represent year-over-year changes of +12.08% and +9.54%, respectively.
Investors might also notice recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 11.02. This indicates a discount in contrast to its industry's Forward P/E of 16.72.
We can additionally observe that ADBE currently boasts a PEG ratio of 0.82. 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 1.5 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much 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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