In the latest close session, Adobe Systems (ADBE) was down 2.24% at $256.24. This change lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.89%.
Coming into today, shares of the software maker had gained 2.54% in the past month. In that same time, the Computer and Technology sector gained 11.4%, while the S&P 500 gained 5.39%.
Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on June 11, 2026. The company is expected to report EPS of $5.83, up 15.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.46 billion, up 9.94% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.54 per share and revenue of $26.07 billion, which would represent changes of +12.42% and +9.66%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Adobe Systems is currently a Zacks Rank #2 (Buy).
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 11.13. For comparison, its industry has an average Forward P/E of 16.28, which means Adobe Systems is trading at a discount to the group.
Also, we should mention that ADBE has a PEG ratio of 0.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 1.66 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 151, which puts it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Adobe Inc. (ADBE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).