Latest news with #AdobeSystems
Yahoo
4 days ago
- Business
- Yahoo
Should You Invest in Adobe (ADBE) Based on Bullish Wall Street Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Adobe Systems (ADBE). Adobe currently has an average brokerage recommendation (ABR) of 1.74, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.74 approximates between Strong Buy and Buy. Of the 34 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 61.8% and 5.9% of all recommendations. Check price target & stock forecast for Adobe here>>>While the ABR calls for buying Adobe, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Adobe, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $20.36. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Adobe. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Adobe. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
Adobe Systems (ADBE) Rises Higher Than Market: Key Facts
In the latest market close, Adobe Systems (ADBE) reached $420.76, with a +0.87% movement compared to the previous day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 0.02%. The the stock of software maker has risen by 19.59% in the past month, leading the Computer and Technology sector's gain of 18.89% and the S&P 500's gain of 13.05%. Market participants will be closely following the financial results of Adobe Systems in its upcoming release. The company plans to announce its earnings on June 12, 2025. It is anticipated that the company will report an EPS of $4.96, marking a 10.71% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.79 billion, indicating an 8.99% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.36 per share and revenue of $23.42 billion, indicating changes of +10.53% and +8.89%, respectively, compared to the previous year. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Adobe Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Right now, Adobe Systems possesses a Zacks Rank of #4 (Sell). Looking at valuation, Adobe Systems is presently trading at a Forward P/E ratio of 20.48. This expresses a discount compared to the average Forward P/E of 28.58 of its industry. It's also important to note that ADBE currently trades at a PEG ratio of 1.65. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.41. The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% 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. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Wall Street Analysts Look Bullish on Adobe (ADBE): Should You Buy?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about Adobe Systems (ADBE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Adobe currently has an average brokerage recommendation (ABR) of 1.76, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.76 approximates between Strong Buy and Buy. Of the 34 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 61.8% and 2.9% of all recommendations. Check price target & stock forecast for Adobe here>>>The ABR suggests buying Adobe, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Adobe, the Zacks Consensus Estimate for the current year has declined 0.2% over the past month to $20.36. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Adobe. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Adobe with a grain of salt. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Adobe Systems (ADBE) Advances But Underperforms Market: Key Facts
In the latest trading session, Adobe Systems (ADBE) closed at $397.40, marking a +0.37% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%. Heading into today, shares of the software maker had gained 12.83% over the past month, outpacing the Computer and Technology sector's gain of 11.93% and the S&P 500's gain of 9.07% in that time. The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is scheduled to release its earnings on June 12, 2025. The company is predicted to post an EPS of $4.96, indicating a 10.71% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.79 billion, up 8.99% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $20.36 per share and a revenue of $23.42 billion, demonstrating changes of +10.53% and +8.89%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% downward. As of now, Adobe Systems holds a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Adobe Systems has a Forward P/E ratio of 19.45 right now. This signifies a discount in comparison to the average Forward P/E of 27.77 for its industry. We can additionally observe that ADBE currently boasts a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.37 as trading concluded yesterday. The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
01-05-2025
- Entertainment
- Time of India
"India's next growth will not be in code, but in creativity,' Adobe's Shantanu Narayen
Shantanu Narayen, the chief executive officer of Adobe Systems, addressed at the inaugural Waves Summit 2025, painting a vibrant picture of India's burgeoning role at the intersection of media, entertainment and technology. His address highlighted India's unique position to lead the world in this new era of technology. Narayen began by reflecting on India's technological journey, recalling the limited reach of television during the 1983 Cricket World Cup victory. He contrasted that with the present day, where India has become an incubator for transformative technologies like mobile, digital payments, cloud computing and artificial intelligence. He emphasised the explosive growth of creativity, noting that over 100 million content creators now operate within India, marking a ten per cent growth in freelance creatives and small design studios over the past decade. The proliferation of affordable mobile internet has fueled this creative explosion. Narayen pointed out that 500 million Indians are now consuming over-the-top (OTT) content on their mobile devices. This surge in consumption is driving localisation and personalisation, with half of the content released now being in regional languages. 'The demand for short-form video content is particularly high, further amplified by the burgeoning gaming industry in India,' Narayen highlighted. A significant portion of Narayen's address focused on the transformative power of Artificial Intelligence (AI) in this creative landscape. He posited that the next generation of entities won't just be applications, but rather the creators and artists themselves. Generative AI, he argued, is empowering Indian creators to overcome creative blocks, streamline their workflows and focus on developing culturally rich concepts and ideas at an unprecedented pace. This technology is enabling them to transcend traditional mediums, opening up new avenues in imaging, video and design and facilitating the sharing of India's unique stories and traditions across multiple languages and channels. Narayen also highlighted AI's role in revolutionising content production in India. It enables the creation of hyper-localised and personalised content tailored to the country's diverse audience in real-time, catering to the demands of industries like Bollywood, regional cinema, religious content and marketing campaigns. He asserted that given the sheer scale of this creative opportunity unlocked by AI, India's future economic growth will be significantly driven by creativity, not just software code. Drawing upon his engineering background, Narayen also outlined India's potential across the four layers of the AI stack: Data: Training AI models on India's rich cultural, linguistic and historical data presents an opportunity to establish new forms of digital sovereignty. Models: While global players invest in foundational models, the development of local Large Language Models (LLMs) offers a chance to combine domain expertise with AI/ML to build India-specific solutions. Autonomous Agents: India's extensive experience in customer support and sales can be leveraged to innovate in the development of autonomous agents and lead AI-driven workflows. Apps and Interfaces: AI will enable the creation of entirely new applications serving both consumers and government entities. Narayen also touched upon four key areas where India can capitalise on AI opportunities: Creativity and production: AI will enhance human imagination, offering new tools and perspectives to explore ideas in novel ways. Fostering new business models: Leveraging its leadership in mobile infrastructure and payments, India can use AI to empower individuals and startups to rapidly prototype and scale innovative solutions tailored to local needs. Leading the AI-empowered global workforce: India's global access to talent and the use of LLMs, AI agents, and low-code tools will allow its outsourcing industry to evolve and create new AI-driven workflows. Driving entrepreneurship: AI will facilitate the creation of diverse content, products, and services, building upon India's strong heritage in learning and education by investing in AI literacy across all age groups. Narayen emphasised India's opportunity to lead globally in ethical AI. He highlighted Adobe's commitment to protecting intellectual property through initiatives like Firefly models designed for commercial safety and the Content Authenticity Initiative (CAI). In closing, Narayen painted a compelling picture of India as a rising creative superpower, poised to shape the future of digital experiences on a global scale.
