The latest trading session saw Adobe Systems (ADBE) ending at $414.07, denoting a +0.38% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.32%.
Shares of the software maker witnessed a gain of 7.71% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.95% and outperforming the S&P 500's gain of 5.2%.
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 June 12, 2025. The company's upcoming EPS is projected at $4.96, signifying a 10.71% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.79 billion, showing an 8.99% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.36 per share and revenue of $23.42 billion, which would represent changes of +10.53% and +8.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Adobe Systems is currently a Zacks Rank #4 (Sell).
In the context of valuation, Adobe Systems is at present trading with a Forward P/E ratio of 20.26. This denotes a discount relative to the industry's average Forward P/E of 26.02.
It's also important to note that ADBE currently trades at a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ADBE's industry had an average PEG ratio of 2.37 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 22% 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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