Sizing Up EPS Growth & Performance on Shares of Adobe Systems Incorporated (NASDAQ:ADBE)

For the next year, sell-side analysts are expecting EPS growth of 25.43% for Adobe Systems Incorporated (NASDAQ:ADBE). Analysts are expecting an EPS change of 86.70% for the current year.

Wall Street analysts polled by Thomson Reuters have a current recommendation of 1.90 on a consensus basis for the stock. The same analysts see shares reaching $159.06 within the next year on a consensus basis.Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Adobe Systems Incorporated (NASDAQ:ADBE)’s stock was 43.98%.  Over the last week of the month, it was 2.28%, 10.18% over the last quarter, and  24.64% for the past six months.

Over the past 50 days, Adobe Systems Incorporated stock’s -2.44% off of the high and 13.02% removed from the low.  Their 52-Week High and Low are noted here.  -2.44% (High), 51.51%, (Low). 

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Adobe Systems Incorporated’s EPS for the trailing 12 months is 2.88.  Their EPS should be compared to other companies in the Technology sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Adobe Systems Incorporated’s  P/E ratio is 51.50. 

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Adobe Systems Incorporated (NASDAQ:ADBE)’s RSI (Relative Strength Index) is 51.73.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Leave a Comment