Is Adobe (ADBE) a 'Buy' Ahead of Its Upcoming Earnings Announcement?

Software giant Adobe is set to report fiscal Q3 results on Thursday after the closing bell. Adobe, a Zacks Rank #4 (Sell), has exceeded the earnings mark in each of the past four quarters. Yet shares have widely underperformed the market this year, shedding more than 20% of their value. With the stock pulling back further in recent weeks, is ADBE a buy prior to the release?Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Analysts are expecting the company to post a profit of $5.17 per share, reflecting growth of 11.2% versus the same quarter last year. Estimates have remained steady over the past 60 days.Sales are projected to have risen 9% versus the year-ago period to $5.9 billion. The Creative Cloud platform provider has averaged a 2.53% positive earnings surprise over the past four quarters.Adobe ADBE is part of the Zacks Computer – Software industry, which currently ranks in the top 31% out of approximately 250 Zacks Ranked Industries. Adobe’s deepening generative AI focus and innovative product portfolio are key catalysts.Still, intensifying competition from the likes of OpenAI remains a top concern. Our proprietary Earnings ESP (Expected Surprise Prediction) indicator does not conclusively predict another beat for this week’s release. Investors would be wise to exercise caution ahead of the Q3 announcement as stocks can be volatile surrounding earnings releases.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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