Yahoo Finance Adobe Systems (ADBE) Stock Moves 0.44%: What You Should Know
In the latest trading session, Adobe Systems (ADBE) closed at $417.21, marking a +0.44% move from the previous day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 2.33%.
Prior to today's trading, shares of the software maker had gained 11.02% over the past month. This has outpaced the Computer and Technology sector's gain of 9.73% and the S&P 500's gain of 1.03% in that time.
Investors will be hoping for strength from Adobe Systems as it approaches its next earnings release, which is expected to be June 15, 2023. The company is expected to report EPS of $3.78, up 12.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.76 billion, up 8.59% from the year-ago period.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $15.41 per share and revenue of $19.21 billion. These results would represent year-over-year changes of +12.4% and +9.14%, respectively.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 26.96. This represents a discount compared to its industry's average Forward P/E of 27.29.
We can also see that ADBE currently has a PEG ratio of 2.02. 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. The Computer - Software was holding an average PEG ratio of 2.04 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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 Report
