Does Adobe Stock Deserve a Place in Your Portfolio?

Asia's Tech News Daily

Even though software company Adobe (ADBE) reported average fourth-quarter results, it has made consistent product and services advancements. So, is it wise to add the stock to one’s portfolio now? Read on to learn our view.

 slashed their price targets,  downgraded the stock’s rating,  add one-click checkouts,  P/E,  POWR Ratings,  Software – Application,  She majored in Economics in college
shutterstock.com – StockNews

Diversified software company Adobe Inc. (ADBE) in San Jose, Calif., is known for Creative Cloud and Photoshop. It has made consistent product and services developments and boasts market dominance. Last December, it was named a Leader in the IDC MarketScape: Worldwide Customer Data Platforms Focused on Front Office Users 2021-2022 Vendor Assessment.

However, the stock has declined 11.3% in price over the past six months and 18.7% over the past month to close yesterday’s trading session at $532.37.

Analysts have slashed their price targets on ADBE’s mixed fourth-quarter results and below-consensus outlook for fiscal 2022. Furthermore, on January 5, UBS analyst Karl Keirstead downgraded the stock’s rating to ‘neutral’ from ‘buy’ because he believes customers may have ‘pulled forward’ their spending in 2020 and 2021, which could hurt 2022 growth rates. So, ADBE’s near-term prospects look uncertain.

Here are the factors that could influence ADBE’s performance in the upcoming months:

Positive Developments

ADBE launched the Creative Cloud Express on Dec. 13, 2021. The unified task-based, web, and mobile product that makes it easy to create and share multimedia content. On Nov. 23, 2021, the company announced a significant partnership with Major League Baseball (MLB) to reimagine fan engagement. Also, ADBE announced on Nov. 18, 2021, that it is partnering with San Francisco-based startup Bolt to add one-click checkouts for retailers that use its e-commerce software tools.

Mixed Financials

For its fiscal fourth quarter, ended Dec. 3, 2021, ADBE’s total revenue increased 20% year-over-year to $4.11 billion. The company’s gross profit increased 20.3% from last year to $3.60 billion. However, its total operating expenses increased 18% year-over-year to $2.10 billion. And its net income decreased 45.2% year-over-year to $1.23 billion. Also, its EPS came in at $2.57, down 44.6% year-over-year.

Lofty Valuation

In terms of forward non-GAAP P/E, ADBE’s 38.54x is 57.9% higher than the 24.42x industry average. The stock’s 2.27x forward non-GAAP PEG is 35.6% higher than the 1.67x industry average. In addition, its 13.98x and respective forward EV/S and P/Sare higher than the 4.11x and 3.99x industry averages.

POWR Ratings Reflect Uncertainty

ADBE has an overall C rating, which equates to a Neutral in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. ADBE has a C grade for Value, in sync with its higher-than-industry valuation ratios.

The stock has a C grade for Momentum, which is consistent with its 18.7% price loss over the past month and 8.3% decline over the past three months.

ADBE is ranked #44  of 167 stocks in the Software – Application industry. In addition to the POWR Rating grades I have just highlighted, we have also rated the stock for Growth, Stability, Sentiment, and Quality. Get all the ADBE ratings here.

Bottom Line

ADBE is a famous player in the software space. However, its shares are currently trading below their 50-day and 200-day moving averages of $618.69 and $587.08, respectively, indicating a downtrend. Furthermore, the stock looks overvalued at the current price level. So, we believe it could be wise to wait before scooping up its shares.

How Does Adobe (ADBE) Stack Up Against its Peers?

While ADBE has an overall POWR Rating of C, one could check out these other stocks within the same industry with A (Strong Buy) ratings: Open Text Corporation (OTEX), Progress Software Corporation (PRGS), and Commvault Systems, Inc. (CVLT).

Click here to check out our Software Industry Report


ADBE shares rose $0.63 (+0.12%) in premarket trading Thursday. Year-to-date, ADBE has declined -6.01%, versus a -0.75% rise in the benchmark S&P 500 index during the same period.



About the Author: Manisha Chatterjee


 slashed their price targets,  downgraded the stock’s rating,  add one-click checkouts,  P/E,  POWR Ratings,  Software – Application,  She majored in Economics in college

Since she was young, Manisha has had a strong interest in the stock market. She majored in Economics in college and has a passion for writing, which has led to her career as a research analyst.

More…

The post Does Adobe Stock Deserve a Place in Your Portfolio? appeared first on StockNews.com

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

NAV Oslo: Unemployment unchanged after corona relief

According to NAV Oslo, the easing of some of the infection control measures has had little effect on the unemployment figures. The figures are unchanged compared to last week. “The ... Read more »

Richemont sales jump shows luxury revival

FILE PHOTO: High jewellery are displayed at luxury goods maker Cartier store on Place Vendome in Paris ZURICH (Reuters) -Cartier owner Richemont said strong demand for its jewellery and watches ... Read more »

Number of fake banknotes hits record low in 2021 amid pandemic

SEOUL, Jan. 19 (Yonhap) — The number of fake South Korean banknotes touched a record low in 2021 due largely to the coronavirus pandemic, the central bank said Wednesday. The ... Read more »

Housing prices to further stabilize on monetary tightening: finance minister

SEOUL, Jan. 19 (Yonhap) — Housing prices are expected to further stabilize due largely to the central bank’s rate hikes and the Federal Reserve’s push for faster monetary tightening, Finance ... Read more »

Stock futures rise slightly after sell-off on Wall Street, more bank earnings ahead

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 10, 2022.Brendan McDermid | Reuters U.S. stock futures rose slightly in overnight ... Read more »

Almost nine out of ten cars sold so far this year in Norway were electric

Two weeks into 2022, among the new passenger cars sold, nine out of ten are electric cars, sales of new passenger cars will decline, according to the Road Traffic Information ... Read more »

What happens to your digital assets and cryptocurrency when you die? Even with a will, they may be overlooked

freemixer | E+ | Getty Images If you're like most Americans, you do not have a formal plan for what will happen to your assets when you die. Just 46% ... Read more »

Goldman CEO says he sees 'real wage inflation everywhere' after 33% jump in pay expenses

People walk along Wall Street in the rain on July 08, 2021 in New York City.Spencer Platt | Getty Images Wall Street firms are playing catch up with employee compensation, ... Read more »

Leaving a steady job to freelance or start your own business requires proper planning

Getty Images Millions of Americans are taking a step back and rethinking their work lives amid the “Great Resignation” and ongoing coronavirus pandemic. A record 4.5 million people quit their ... Read more »

Stocks making the biggest moves midday: Activision Blizzard, Goldman Sachs, Peloton, Moderna and more

A Peloton office sign is seen near a person riding a bicycle as the city moves into Phase 3 of re-opening following restrictions imposed to curb the coronavirus pandemic on ... Read more »

Is the ‘Zoom ceiling' the new glass ceiling? Experts worry remote work will hold women back

Margaret Bailey, pictured with her son, works hybrid, spending some time at home and some time in the office.Source: Margaret Bailey The ability to work remotely has been a lifeline ... Read more »

Mastercard strikes NFT payments deal with Coinbase amid a wave of recent crypto partnerships

A 3D printed Mastercard logo is seen in front of displayed stock graph in this illustration taken September 20, 2021.Dado Ruvic | Reuters Mastercard said Tuesday it inked a deal ... Read more »

U.S. companies are expecting to pay a 3.4% raise to workers in 2022

Ezra Bailey | Stone | Getty Images U.S. employers expect to pay an average 3.4% raise to their workers in 2022, according to a Willis Towers Watson survey. That projected ... Read more »

DNB: Record high oil prices are good news for the Norwegian krone

The oil price is higher than it has been for over seven years, which is good news for the Norwegian krone. On Tuesday, the price of a barrel of North ... Read more »

UK launches crackdown on 'misleading' cryptocurrency ads

The crypto ecosystem has expanded significantly in recent years. While institutions such as the IMF are starting to embrace its innovation, they are also calling for investors to exercise caution.Jakub ... Read more »

Goldman Sachs is set to report fourth-quarter earnings —here's what the Street expects

David M. Solomon, Chairman and CEO of Goldman Sachs, speaks during the Milken Institute's 22nd annual Global Conference in Beverly Hills, April 29, 2019Mike Blake | Reuters Goldman Sachs is ... Read more »

China's digital yuan notches $8.3 billion in transactions in 6 months, taking a tiny share of payments

A sign for China's digital currency, the electronic Chinese yuan (e-CNY) is displayed at a shopping mall in Shanghai on March 8, 2021.STR | AFP | Getty Images BEIJING — ... Read more »

(LEAD) S. Korea aims to minimize market impact of extra budget-related bond sale: official

(ATTN: UPDATES with bond market reaction in paras 5-8) SEOUL, Jan. 18 (Yonhap) — South Korea plans to sell similar amounts of state bonds over periods in a bid to ... Read more »

(LEAD) Hyundai Capital launches joint venture to provide auto finance in France

(ATTN: ADDS Hyundai, Kia sales figures in France at bottom) SEOUL, Jan. 18 (Yonhap) — Hyundai Capital Services Inc., South Korea’s leading auto finance company, said Tuesday it has launched ... Read more »

Top Stock Picks for Week of January 17, 2022

Ford Motor Company F designs, manufactures, markets and services cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles.Strong vehicle mix supported by F-series trucks and SUV models is ... Read more »

STMicroelectronics (STM) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, STMicroelectronics (STM) closed at $49.61, marking a +1.91% move from the previous day. This change outpaced the S&P 500’s 0.08% gain on the day. Elsewhere, ... Read more »

Norwegian Cruise Line (NCLH) Stock Sinks As Market Gains: What You Should Know

Norwegian Cruise Line (NCLH) closed the most recent trading day at $22.96, moving -0.65% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.08%. Meanwhile, ... Read more »

3 Sales & Earnings Growth Winners

With thousands of companies about to report their quarterly results as a new earnings season begins, let’s take a look at the Sales & Earnings Growth Winners screen. It starts ... Read more »

DuPont de Nemours (DD) Outpaces Stock Market Gains: What You Should Know

DuPont de Nemours (DD) closed the most recent trading day at $84.97, moving +1.14% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.08%. Meanwhile, ... Read more »

The Andersons (ANDE) Stock Sinks As Market Gains: What You Should Know

The Andersons (ANDE) closed the most recent trading day at $39.28, moving -0.51% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the ... Read more »

Ally Financial (ALLY) Stock Sinks As Market Gains: What You Should Know

Ally Financial (ALLY) closed at $52.64 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500’s daily gain of 0.08%. At ... Read more »

New Residential Investment (NRZ) Stock Sinks As Market Gains: What You Should Know

New Residential Investment (NRZ) closed the most recent trading day at $11.14, moving -0.18% from the previous trading session. This change lagged the S&P 500’s 0.08% gain on the day. ... Read more »

Toyota Motor Corporation (TM) Stock Sinks As Market Gains: What You Should Know

Toyota Motor Corporation (TM) closed the most recent trading day at $210.69, moving -0.32% from the previous trading session. This change lagged the S&P 500’s 0.08% gain on the day. ... Read more »

GlaxoSmithKline share price up, Unilever down: here's why I'd buy both

Trader on video call from his home office I don’t own shares in GlaxoSmithKline (LSE: GSK) or Unilever (LSE: ULVR), but my reasons for wanting to buy them have grown ... Read more »

This Entrepreneur Transformed the Power Of the Environment Into a Successful Business

What is all around us is the major influence on our lives. Whether we succeed or fail professionally or in a relationship is directly influenced by the atmosphere we live ... Read more »

S. Korea's instant meals market skyrockets 145% over 4 years

(Yonhap)The South Korean market of instant meals jumped more than 145 pct in 2020 from four years earlier on the increased number of convenience stores and the coronavirus pandemic, data ... Read more »

Won's steep descent caused by high commodity prices, reliance on China, foreigners' selloff

SEOUL, Jan. 18 (Yonhap) — South Korea’s currency has depreciated against the U.S. dollar more steeply than other currencies due to soaring prices of raw materials, the country’s heavy dependence ... Read more »

Who is Antonio Horta-Osorio, the ex Lloyds chief ousted from Credit Suisse over Covid rules

(Daniel Hambury/@stellapicsltd) Antonio Horta-Osorio, the former boss of Lloyds Banking Group, has made headlines after allegedly breaking coronavirus restrictions and subsequently resigning as chairman of Swiss bank Credit Suisse. Sir ... Read more »

23 shippers fined W96.2b for collusion on freight rates

(HMM)South Korea’s antitrust regulator said Tuesday it has decided to impose a combined fine of 96.2 billion won ($80.7 million) in fines on 23 Korean and foreign shippers for their ... Read more »

Rio Tinto says output from $2.4 billion Serbia lithium project to be delayed

The Rio Tinto mine in Boron, California (Reuters) – Rio Tinto on Tuesday pushed back its timeline by a year to 2027 for first saleable production at its $2.4 billion ... Read more »

‘People are spooked': Australia's January consumer confidence sinks to three-decade low over Omicron

Photograph: Bianca de Marchi/AAP As Covid cases surge Australians are avoiding spending, despite 2021 ending on an economic high Get our free news app; get our morning email briefing Australia’s ... Read more »

Auto exports up 8.6% in 2021 on popularity of eco-friendly cars

This file photo provided by Hyundai Motor shows the Seven concept SUV unveiled at the LA Auto Show on Wednesday. (Hyundai Motor)South Korea’s auto exports rose 8.6 percent on-year in ... Read more »

ABS issuance down 22% in 2021

The headquarters of the Financial Supervisory Service in Seoul (Yonhap)The issuance of asset-backed securities (ABS) in South Korea shrank 22 percent on-year in 2021 due to declined sales of government-led ... Read more »

U.S. stock futures are little changed ahead of more earnings reports

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, January 12, 2022.Brendan McDermid | Reuters U.S. stock futures were little changed Monday night as ... Read more »

The 'Stress-Free Side Hustle' Is Not a Thing

Self-help and service-based literature do would-be entrepreneurs a disservice by casually tossing out promises like “easy”, “stress-free” or “make six figures in your sleep” when it comes to exploring side hustles. Startups require repeated ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic