Adobe Systems (ADBE) Rises But Trails Market: What Investors Should Know

In the latest close session, Adobe Systems (ADBE) was up +1.21% at $357.80. The stock's change was less than the S&P 500's daily gain of 1.23%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 1.86%. Coming into today, shares of the software maker had lost 1.9% in the past month. In that same time, the Computer and Technology sector gained 3.49%, while the S&P 500 gained 2.45%. Market participants will be closely following the financial results of Adobe Systems in its upcoming release. It is anticipated that the company will report an EPS of $5.39, marking a 12.06% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.1 billion, indicating a 8.86% increase compared to the same quarter of the previous year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.76 per share and a revenue of $23.67 billion, signifying shifts of +12.7% and +10.06%, respectively, from the last year. Investors might also notice recent changes to analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold). From a valuation perspective, Adobe Systems is currently exchanging hands at a Forward P/E ratio of 17.03. This indicates a discount in contrast to its industry's Forward P/E of 29.59. Investors should also note that ADBE has a PEG ratio of 1.3 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. The Computer - Software industry had an average PEG ratio of 2.12 as trading concluded yesterday. The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250. The Zacks Industry Rank is ordered 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks 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