Adobe Story

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ADBE -- USA Stock  

USD 472.02  2.29  0.49%

Adobe Inc is scheduled to announce its earnings today. The next earnings report is expected on the 11th of March 2021. While some baby boomers are getting worried about their positions in technology space, it is entirely reasonable to digest Adobe as a possible position for your existing portfolio. We will cover the possibilities of Adobe recovering given the latest economic outlook.
Published over a month ago
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Is Adobe (NASDAQ:ADBE) outlook optimistic based on the latest analyst consensus?
Adobe has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.2157, which signifies not very significant fluctuations relative to the market. Let's try to break down what Adobe's beta means in this case. As returns on the market increase, returns on owning Adobe are expected to decrease at a much lower rate. During the bear market, Adobe is likely to outperform the market. Although it is extremely important to respect Adobe Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Adobe Inc technical indicators, you can presently evaluate if the expected return of 0.0533% will be sustainable into the future. Adobe Inc right now shows a risk of 2.19%. Please confirm Adobe Inc maximum drawdown, semi variance, and the relationship between the sortino ratio and potential upside to decide if Adobe Inc will be following its price patterns.
What is the right price you would pay to acquire a share of Adobe? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Adobe Inc this year

Annual and quarterly reports issued by Adobe Inc are formal financial statements that are published yearly and quarterly and sent to Adobe stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Adobe often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Adobe utilizes its cash?

To perform a cash flow analysis of Adobe, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Adobe is receiving and how much cash it distributes out in a given period. The Adobe cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Adobe Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 4.03 Billion

What is driving Adobe Investor Appetite?

Earning per share calculations of Adobe is based on official Zacks consensus of 6 analysts regarding Adobe's future annual earnings. Given the historical accuracy of 94.94%, the future earnings per share of the company is estimated to be 8.225 with the lowest and highest values of 8.18 and 8.34, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Adobe a risky opportunity?

Let's check the volatility. Adobe is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Adobe (NASDAQ:ADBE) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of an Adobe stock makes you a part-owner of that company.

Adobe Inc Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Adobe Inc. The Adobe consensus assessment is calculated by taking the average estimates from all of the analysts covering Adobe

Strong Buy
Strong Buy1376.47
Strong Sell00.0

Another small dip for Adobe

Variance is down to 4.88. It may indicate a possible volatility dip. As of the 10th of December, Adobe shows the Mean Deviation of 1.68, risk adjusted performance of 0.0531, and Downside Deviation of 2.4. Adobe Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Adobe Inc, which can be compared to its rivals. Please confirm Adobe Inc maximum drawdown, semi variance, and the relationship between the jensen alpha and potential upside to decide if Adobe Inc is priced correctly, providing market reflects its regular price of 476.87 per share. Given that Adobe has jensen alpha of 0.1102, we suggest you to validate Adobe Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Adobe

Although other companies within the software?infrastructure industry are still a little expensive, even after the recent corrections, Adobe may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Adobe valuation and our trade advice on Adobe is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Adobe.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Adobe Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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