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Adobe Systems (ADBE) closed at $429.99 in the latest trading session, marking a +0.72% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1%. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 1.51%.
Shares of the software maker have depreciated by 2.39% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.13% and lagging the S&P 500's loss of 2.14%.
The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is forecasted to report an EPS of $4.97, showcasing a 10.94% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.65 billion, showing a 9.11% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.39 per share and a revenue of $23.45 billion, representing changes of +10.69% and +9.04%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Adobe Systems is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 20.93. Its industry sports an average Forward P/E of 30.55, so one might conclude that Adobe Systems is trading at a discount comparatively.
It's also important to note that ADBE currently trades at a PEG ratio of 1.69. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.37.