Here's Why Adobe Systems (ADBE) Gained But Lagged the Market Today

In the latest market close, Adobe Systems (ADBE) reached $440.23, with a +0.37% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.35%.Shares of the software maker witnessed a gain of 1.72% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.35% and the S&P 500's gain of 1.02%.Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company plans to announce its earnings on March 12, 2025. 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. Alongside, our most recent consensus estimate is anticipating revenue of $5.65 billion, indicating a 9.11% upward movement from the same quarter last year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.39 per share and a revenue of $23.45 billion, indicating changes of +10.69% and +9.04%, respectively, from the former year.It is also important to note the recent changes to analyst estimates for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Adobe Systems currently has a Zacks Rank of #3 (Hold).Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 21.51. This signifies a discount in comparison to the average Forward P/E of 31 for its industry.We can also see that ADBE currently has a PEG ratio of 1.73. 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 currently had an average PEG ratio of 2.24 as of yesterday's close.The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% of all 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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