- 30 ноября 2018, 01:45
- Zacks Investment Research
Adobe Systems (ADBE) closed the most recent trading day at $249.09, moving -0.05% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the software maker had gained 1.4% over the past month, outpacing the Computer and Technology sector's gain of 1.37% and lagging the S&P 500's gain of 3.57% in that time.
ADBE will be looking to display strength as it nears its next earnings release, which is expected to be December 13, 2018. On that day, ADBE is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 49.21%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 20.8% from the prior-year quarter.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $6.80 per share and revenue of $8.99 billion. These results would represent year-over-year changes of +57.77% and +23.11%, respectively.
Investors should also note any recent changes to analyst estimates for ADBE. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. ADBE currently has a Zacks Rank of #2 (Buy).
Investors should also note ADBE's current valuation metrics, including its Forward P/E ratio of 36.65. For comparison, its industry has an average Forward P/E of 31, which means ADBE is trading at a premium to the group.
It is also worth noting that ADBE currently has a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.18 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 99, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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