In the latest close session, Adobe Systems (ADBE) was down 2.29% at $286.08. This move lagged the S&P 500's daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.79%, and the technology-centric Nasdaq decreased by 1.03%.
Shares of the software maker have appreciated by 16.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.69%, and the S&P 500's gain of 2.72%.
The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's earnings report is expected on September 10, 2026. On that day, Adobe Systems is projected to report earnings of $6.08 per share, which would represent year-over-year growth of 14.5%. At the same time, our most recent consensus estimate is projecting a revenue of $6.69 billion, reflecting a 11.75% rise from the equivalent quarter last year.
ADBE's full-year Zacks Consensus Estimates are calling for earnings of $24.31 per share and revenue of $26.56 billion. These results would represent year-over-year changes of +16.09% and +11.74%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Adobe Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. As of now, Adobe Systems holds a Zacks Rank of #4 (Sell).
Investors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 12.04. This signifies a discount in comparison to the average Forward P/E of 17.95 for its industry.
We can also see that ADBE currently has a PEG ratio of 0.83. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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