In the latest trading session, Adobe Systems (ADBE) closed at $397.40, marking a +0.37% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%.
Heading into today, shares of the software maker had gained 12.83% over the past month, outpacing the Computer and Technology sector's gain of 11.93% and the S&P 500's gain of 9.07% in that time.
The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is scheduled to release its earnings on June 12, 2025. The company is predicted to post an EPS of $4.96, indicating a 10.71% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.79 billion, up 8.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $20.36 per share and a revenue of $23.42 billion, demonstrating changes of +10.53% and +8.89%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% downward. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 19.45 right now. This signifies a discount in comparison to the average Forward P/E of 27.77 for its industry.
We can additionally observe that ADBE currently boasts a PEG ratio of 1.57. 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 industry had an average PEG ratio of 2.37 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% 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.
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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