Adobe Slides 10.9% Month-to-Month, Trades at 11.25x Forward P/E Ahead of March Earnings
Adobe closed at $260.44, down 1.34% and has fallen 10.86% over the past month versus a 4.05% sector loss and 1.43% S&P slide. Analysts expect March 12 earnings of $5.88 per share on $6.28 billion revenue; the stock’s forward P/E is 11.25 versus a 16.78 industry average.
1. Recent Price Performance
Adobe closed the latest session at $260.44, down 1.34% while the S&P 500, Dow and Nasdaq rose by 0.10%, 0.07% and 0.14% respectively. Over the past month the stock has declined 10.86%, lagging the Computer & Technology sector’s 4.05% drop and the S&P 500’s 1.43% slide.
2. Upcoming Earnings Forecast
The next earnings release on March 12 is projected to deliver $5.88 in EPS, up 15.75% year-over-year, on revenue of $6.28 billion, a 9.92% increase. Full-year estimates call for $23.47 in EPS (+12.08%) and $26.04 billion in revenue (+9.54%).
3. Valuation and Analyst Sentiment
Adobe trades at a forward P/E of 11.25, well below the 16.78 industry average, and has a PEG ratio of 0.84 versus the 1.38 norm in software. Analyst consensus maintains a neutral hold rating, and the computer software industry ranks in the top 31% of more than 250 industries by average analyst sentiment.