Adobe Systems (ADBE) Advances But Underperforms Market: Key Facts

Group 1: Company Performance - Adobe Systems closed at $429.99, with a +0.72% change from the previous day, underperforming the S&P 500's daily gain of 1% [1] - Over the past month, Adobe's shares have depreciated by 2.39%, outperforming the Computer and Technology sector's loss of 4.13% and lagging the S&P 500's loss of 2.14% [1] Group 2: Earnings Forecast - Adobe is forecasted to report an EPS of$ 4.97, reflecting a 10.94% increase from the same quarter last year, with expected revenue of $5.65 billion, a 9.11% increase year-over-year [2] - For the entire fiscal year, earnings are projected at$ 20.39 per share and revenue at $23.45 billion, representing increases of +10.69% and +9.04% respectively from the prior year [3] Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for Adobe indicate evolving short-term business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [3] - Adobe currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having moved 0.07% higher in the past month [5] Group 4: Valuation Metrics - Adobe is trading at a Forward P/E ratio of 20.93, which is lower than the industry average of 30.55, suggesting it is trading at a discount [6] - The company has a PEG ratio of 1.69, compared to the industry average PEG ratio of 2.37, indicating a favorable valuation relative to expected earnings growth [7] Group 5: Industry Context - The Computer - Software industry, part of the broader Computer and Technology sector, has a Zacks Industry Rank of 162, placing it in the bottom 36% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the industry [8]