Adobe Systems (ADBE) Exceeds Market Returns: Some Facts to Consider

In the latest close session, Adobe Systems (ADBE) was up +1.15% at $337.05. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.26%. Heading into today, shares of the software maker had lost 0.81% over the past month, lagging the Computer and Technology sector's gain of 6.16% and the S&P 500's gain of 4.57%.The investment community will be paying close attention to the earnings performance of Adobe Systems in its upcoming release. The company is expected to report EPS of $5.39, up 12.06% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 8.85% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $20.77 per share and a revenue of $23.67 billion, demonstrating changes of +12.76% and +10.06%, respectively, from the preceding year. Investors should also pay attention to any latest changes in analyst estimates for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Adobe Systems is currently a Zacks Rank #3 (Hold). Digging into valuation, Adobe Systems currently has a Forward P/E ratio of 16.04. Its industry sports an average Forward P/E of 24.04, so one might conclude that Adobe Systems is trading at a discount comparatively. Investors should also note that ADBE has a PEG ratio of 1.22 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ADBE's industry had an average PEG ratio of 1.88 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 77, which puts it in the top 32% of all 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks