In the latest market close, Adobe Systems (ADBE) reached $420.76, with a +0.87% movement compared to the previous day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 0.02%.
The the stock of software maker has risen by 19.59% in the past month, leading the Computer and Technology sector's gain of 18.89% and the S&P 500's gain of 13.05%.
Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company plans to announce its earnings on June 12, 2025. It is anticipated that the company will report an EPS of $4.96, marking a 10.71% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.79 billion, indicating an 8.99% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.36 per share and revenue of $23.42 billion, indicating changes of +10.53% and +8.89%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Right now, Adobe Systems possesses a Zacks Rank of #4 (Sell).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 20.48. This expresses a discount compared to the average Forward P/E of 28.58 of its industry.
It's also important to note that ADBE currently trades at a PEG ratio of 1.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.41.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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