NASDAQ:ADBE
$35.75
(3/18 4:00PM)
+0.7%
| Open | $35.72 |
Mkt Cap | $18.8 Billion |
| High | $35.95 |
52Wk High | $38.20 |
| Low | $35.52 |
52Wk Low | $20.79 |
| Volume | 4.2 Million |
Avg Vol 10D | 5.6 Million |
Ockham's Rating/Recommendation Summary
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ADBE Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, ADBE the high and low end of the Price to Sales per share ratios are 10.00x and 5.64x respectively.
Notice that ADBE's current Price to Sales per share ratio is 6.26x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $35.16, ADBE is 20% below where we would expect to see it. This will beneficially factor into our final analysis of ADBE as it is not often that this stock sinks to these levels.
ADBE Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of ADBE, Ockham views their current Cash Earnings as above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for ADBE, the current level of Cash Earnings compared to its historical levels helps identify where ADBE is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 35.06 and a historical low Cash Earnings per share ratio of 19.11, an investor can relate where value becomes optimal.
So when we look at ADBE, what does this slightly higher than historical level of Price to Cash Earnings mean? From the Ockham perspective, it basically represents that the market has a higher stock price attributed to this level of Cash Earnings than compared to normal. So while we view this as a negative from a valuation perspective, it certainly doesn't mean that ADBE couldn't rapidly improve in its value from other factors or a decline in stock price. The current Price to Cash Earnings level of 27.47 is 1% above the historical norm as calculated at Ockham. So a decline in stock price, or more hopefully, an increase in ADBE's Cash Earnings levels would improve our outlook for the stock.
ADBE Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
Squawk On The Street Has News on ADBE
The latest news on Squawk On The Street in regards to ADBE came through on RazorWire recently.
Adobe Systems, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; ADBE has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… ADOBE's one of them, up 2. 75%, overweight at morgan stanley, autodesk having a good day as well, added to the conviction buy list at goldman. …”
ADBE News Mentioned on Squawk On The Street Recently
The latest news from Squawk On The Street on ADBE is available through Ockham's news analytics platform RazorWire.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Adobe Systems, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on ADBE because it trades within the price range that we would expect given current market conditions and fundamentals.
“… ADOBE up 2%, remains overweight. Morgan stanley, the firm sees positive results. Sales of the acrobat software program. …”
News on ADBE From the Pundits on Squawk On The Street
Adobe Systems, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk On The Street.
The Ockham valuation currently has a Fairly Valued stance on ADBE because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Adobe Systems, Incorporated has actually sunk a bit in comparison to the others.
“… we're talking about ADOBE because the nasdaq's going to open higher and ADOBE will be one of the movers to the up side, remaining overweight at morgan stanley. …”
Earnings Discussion for Adobe Systems, Incorporated on The Call
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed The Call discussed earnings on ADBE.
In comparison to the other stocks that we follow, Adobe Systems, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on ADBE because it trades within the price range that we would expect given current market conditions and fundamentals. Take notice of the news on this stock because it is up $2.13 since the close of trading yesterday. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… That might change as we get toward the close, but intuit, juniper and ADOBE are getting an early jump on the action. Utilities are on track for their best week that we've seen ... …”
Adobe Systems, Incorporated News is Being Covered Right Now on Closing Bell
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Adobe Systems, Incorporated.
Ranking all stocks in terms of news coverage offers some interesting data. In the case of ADBE, it is getting significantly more attention in recent news coverage than we are used to seeing. Adobe Systems, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Started ADOBE at a buy. Citrix at a sell. They started to sell because it is women above where they believe it is fairly value. …”
Check Out Mad Money and News on ADBE
News has broken via the television and viral blogs regarding ADBE, so investors should take an interest in learning what was said.
The Motley Fool CAPS data suggests that investors believe Adobe Systems, Incorporated will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on ADBE. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ADBE has been less covered in the news compared to the rest of our universe of stocks.
“… this shocked me to the core I was about to think about talking about ADOBE on the show. I now feel because that's a competitor, I now am worried about ADOBE, because I think and ... …”
Stocks to Watch: ADBE Heavily Covered on Closing Bell
ADBE has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
Adobe Systems, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ADBE has received less coverage from the financial media in business television and blogs.
“… Moving onto upgrades, both dell and ADOBE SYSTEMS upgraded to buy today. Respectively, from bank of america and from jeffrey's and finally in biotech, sell gene up 2. …”
See More News on ADBE from Power Lunch
News has broken via the television and viral blogs regarding ADBE, so investors should take an interest in learning what was said.
The Ockham valuation currently has a Fairly Valued stance on ADBE because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Adobe Systems, Incorporated has actually sunk a bit in comparison to the others.
“… Millicom, the emerging market cell phone company up 6% and two upgrades to a buy for dell and ADOBE SYSTEMS at bank of america and jefferies respectively. Those stocks up 1. …”
ADBE News Mentioned on Fox Business Recently
As always, the latest news on ADBE is available to Ockham clients through RazorWire, and it was mentioned recently on Fox Business.
The Ockham valuation currently has a Fairly Valued stance on ADBE because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Adobe Systems, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… ADOBE upgraded over at credit suisse as well as jeffries and dell lifted to a buy over at bank of america merrill lynch. But I think that google story really has some legs on ... …”
Its All About Earnings: Squawk On The Street Talks About ADBE
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed Squawk On The Street discussed earnings on ADBE.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ADBE has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on ADBE. The Motley Fool CAPS data suggests that investors believe Adobe Systems, Incorporated will beat the market in the foreseeable future.
“… Jeffries raising ADOBE SYSTEMS to a buy up almost 2%. We've got baidu the chinese search engine giant trading at a new 52-week high today. …”