In the latest close session, Adobe Systems (ADBE) was down 1.06% at $234.74. This change lagged the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.
Shares of the software maker witnessed a gain of 21.57% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.32%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $6.08, marking a 14.5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.67 billion, up 11.38% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.31 per share and a revenue of $26.52 billion, representing changes of +16.09% and +11.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Right now, Adobe Systems possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 9.76 right now. This valuation marks a discount compared to its industry average Forward P/E of 15.74.
We can also see that ADBE currently has a PEG ratio of 0.65. 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 industry currently had an average PEG ratio of 1.32 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 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Report
This article originally published on Zacks Investment Research (zacks.com).