Adobe Systems (ADBE) Laps the Stock Market: Here's Why

In the latest market close, Adobe Systems (ADBE) reached $458.82, with a +1.71% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.The software maker's shares have seen an increase of 10.43% over the last month, surpassing the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 4.19%.Analysts and investors alike will be keeping a close eye on the performance of Adobe Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on March 12, 2025. On that day, Adobe Systems is projected to report earnings of $4.97 per share, which would represent year-over-year growth of 10.94%. 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 full year, the Zacks Consensus Estimates project earnings of $20.39 per share and a revenue of $23.45 billion, demonstrating changes of +10.69% and +9.04%, respectively, from the preceding year.Any recent changes to analyst estimates for Adobe Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Adobe Systems is currently a Zacks Rank #3 (Hold).In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 22.12. This valuation marks a discount compared to its industry's average Forward P/E of 30.39.Meanwhile, ADBE's PEG ratio is currently 1.78. 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. ADBE's industry had an average PEG ratio of 2.22 as of yesterday's close.The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 135, this industry ranks in the bottom 47% of all industries, numbering over 250.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow ADBE in the coming trading sessions, be sure to utilize Zacks.com.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks