Adobe Systems (ADBE) closed at $331.15 in the latest trading session, marking a -0.88% move from the prior day. This change was narrower than the S&P 500's 1.44% loss on the day. Elsewhere, the Dow lost 1.03%, while the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the software maker had gained 11.53% in the past month. In that same time, the Computer and Technology sector gained 11.26%, while the S&P 500 gained 6.22%.
Wall Street will be looking for positivity from Adobe Systems as it approaches its next earnings report date. This is expected to be December 15, 2022. On that day, Adobe Systems is projected to report earnings of $3.50 per share, which would represent year-over-year growth of 9.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.52 billion, up 10.03% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 22.02. This valuation marks a discount compared to its industry's average Forward P/E of 26.4.
Meanwhile, ADBE's PEG ratio is currently 1.72. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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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