Adobe Systems (ADBE) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Adobe Systems (ADBE) ended the recent trading session at $516.20, demonstrating a +0.05% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, added 0.97%.Shares of the software maker have appreciated by 6.86% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.06% and the S&P 500's gain of 3.51%.The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's earnings report is expected on December 11, 2024. The company is predicted to post an EPS of $4.66, indicating a 9.13% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.54 billion, up 9.72% from the year-ago period.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Adobe Systems boasts a Zacks Rank of #3 (Hold).In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 28.23. This expresses a discount compared to the average Forward P/E of 31.89 of its industry.We can additionally observe that ADBE currently boasts a PEG ratio of 2.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 2.5 at the close of the market yesterday.The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 27% 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.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.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