Yahoo Finance Adobe Systems (ADBE) Gains But Lags Market: What You Should Know
In the latest trading session, Adobe Systems (ADBE) closed at $610.09, marking a +0.42% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day.
Prior to today's trading, shares of the software maker had lost 8.66% over the past month. This has lagged the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 0.05% in that time.
ADBE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.18, up 13.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, up 19.17% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $12.46 per share and revenue of $15.75 billion. These results would represent year-over-year changes of +23.37% and +22.43%, respectively.
Investors should also note any recent changes to analyst estimates for ADBE. These revisions help to show the ever-changing nature 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 2.39% higher. ADBE is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, ADBE currently has a Forward P/E ratio of 48.76. This valuation marks a premium compared to its industry's average Forward P/E of 35.02.
Investors should also note that ADBE has a PEG ratio of 2.56 right now. 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 currently had an average PEG ratio of 2.98 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 163, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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