Adobe Systems (ADBE) Advances But Underperforms Market: Key Facts

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.The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 36% of over 250 industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks