In the latest trading session, Adobe Systems (ADBE) closed at $645.01, marking a -0.02% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.58%.
Prior to today's trading, shares of the software maker had gained 1.29% over the past month. This has lagged the Computer and Technology sector's gain of 2.08% and outpaced the S&P 500's gain of 0.16% in that time.
Wall Street will be looking for positivity from ADBE as it approaches its next earnings report date. This is expected to be September 21, 2021. The company is expected to report EPS of $3, up 16.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.88 billion, up 20.32% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.21 per share and revenue of $15.65 billion, which would represent changes of +20.89% and +21.64%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ADBE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. ADBE is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ADBE currently has a Forward P/E ratio of 52.86. Its industry sports an average Forward P/E of 34.71, so we one might conclude that ADBE is trading at a premium comparatively.
We can also see that ADBE currently has a PEG ratio of 2.82. 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. The Computer - Software was holding an average PEG ratio of 3.05 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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 Report
To read this article on Zacks.com click here.