3 Reasons to Buy Adobe Stock Like There's No Tomorrow

Core Viewpoint - Adobe's stock has underperformed in 2024 despite strong growth and profitability, primarily due to market uncertainty regarding its AI strategy [1][2] Group 1: Adobe's AI Leadership - Adobe has maintained a global leadership position in software for over 30 years, with products like Photoshop and Illustrator recognized as industry standards [3] - The company has integrated AI and machine learning features across its applications, enhancing productivity and user experience [4] - Adobe's comprehensive offerings provide a significant advantage over specialized AI companies, positioning it well for future growth [5][6] Group 2: Strong Growth Outlook - In Q4 of fiscal 2024, Adobe's sales increased by 11% year over year, with adjusted EPS rising by 13% [7] - Remaining performance obligations (RPO) reached $19.96 billion, a 16$20.20 and $20.50, reflecting positive operating momentum [9][11] Group 3: Bargain Valuation - Adobe's shares are trading at under 22 times forward earnings, significantly lower than its historical average of about 46 [12] - The stock is considered undervalued given its potential for double-digit earnings growth and strong positioning in AI [13] - Compared to other tech companies, Adobe stands out as a value stock, with a more attractive P/E ratio [13]