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

Adobe Systems (ADBE) closed the most recent trading day at $368.62, moving +0.24% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.1%.The software maker's stock has dropped by 4.66% in the past month, exceeding the Computer and Technology sector's loss of 5.52% and lagging the S&P 500's loss of 4.29%.Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company plans to announce its earnings on June 12, 2025. The company's upcoming EPS is projected at $4.96, signifying a 10.71% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.79 billion, up 8.99% from the prior-year quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.36 per share and a revenue of $23.42 billion, indicating changes of +10.53% and +8.89%, respectively, from the former year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold).With respect to valuation, Adobe Systems is currently being traded at a Forward P/E ratio of 18.07. This valuation marks a discount compared to its industry's average Forward P/E of 25.96.It is also worth noting that ADBE currently has a PEG ratio of 1.45. 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. The Computer - Software industry had an average PEG ratio of 2.25 as trading concluded yesterday.The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 250 industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks