Yahoo Finance Adobe Systems (ADBE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Adobe Systems (ADBE) closed at $360.43, marking a +1.07% move from the previous day. This move outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 4.73%.
Heading into today, shares of the software maker had lost 6.18% over the past month, lagging the Computer and Technology sector's gain of 4.68% and the S&P 500's gain of 0.3% 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. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Adobe Systems currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 23.14. This represents a discount compared to its industry's average Forward P/E of 25.54.
Investors should also note that ADBE has a PEG ratio of 1.73 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADBE's industry had an average PEG ratio of 2.09 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 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
