Yahoo Finance Adobe Systems (ADBE) Stock Declines While Market Improves: Some Information for Investors
Adobe Systems (ADBE) closed the most recent trading day at $439.02, moving -1.29% from the previous trading session. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.56%.
Coming into today, shares of the software maker had lost 8.52% in the past month. In that same time, the Computer and Technology sector gained 7.61%, while the S&P 500 gained 5.06%.
Investors will be eagerly watching for the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 13, 2024. The company's upcoming EPS is projected at $4.38, signifying a 12.02% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.28 billion, showing a 9.65% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.96 per share and a revenue of $21.42 billion, signifying shifts of +11.76% and +10.37%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 remained stagnant. Adobe Systems currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Adobe Systems is currently exchanging hands at a Forward P/E ratio of 24.77. Its industry sports an average Forward P/E of 27.56, so one might conclude that Adobe Systems is trading at a discount comparatively.
We can also see that ADBE currently has a PEG ratio of 1.95. 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. The Computer - Software was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Adobe Inc. (ADBE) : Free Stock Analysis Report
