Free Premium Softwares | Free Premium Apps

Are you human?

Double click any of the below ads and after that, reload the page and you can submit your gig!

Is the Options Market Predicting a Spike in Adobe (ADBE) Stock?

Adobe Stock Image downloader

Investors in Adobe Inc. ADBE need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 17, 2022 $275.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?

Clearly, options traders are pricing in a big move for Adobe shares, but what is the fundamental picture for the company? Currently, Adobe is a Zacks Rank #3 (Hold) in the Computer – Software industry that ranks in the Bottom 40% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while seven have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.36 per share to $3.30 in that period.

Given the way analysts feel about Adobe right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

Click to see the trades now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Adobe Stock Image Downloader

Tagged : , , , , , , , , , , Visit Gig

Related Posts

Free Adobe Stock Image Downloader Without Watermark

Adobe Systems (ADBE) closed at $406.76 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500’s 1.86% gain on the day. Elsewhere, the Dow gained 1.98%, while the tech-heavy Nasdaq added 0.24%.

Coming into today, shares of the software maker had lost 2.34% in the past month. In that same time, the Computer and Technology sector lost 13.4%, while the S&P 500 lost 12.37%.

Adobe Systems will be looking to display strength as it nears its next earnings release. On that day, Adobe Systems is projected to report earnings of $3.30 per share, which would represent year-over-year growth of 8.91%. Meanwhile, our latest consensus estimate is calling for revenue of $4.34 billion, up 13.12% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.58 per share and revenue of $17.83 billion. These totals would mark changes of +8.81% and +12.93%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 29.38. This valuation marks a premium compared to its industry’s average Forward P/E of 28.33.

Story continues

Meanwhile, ADBE’s PEG ratio is currently 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. ADBE’s industry had an average PEG ratio of 2.19 as of yesterday’s close.

The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Tagged : Visit Gig

Related Posts

Free Adobe Stock Image Downloader Without Watermark

Adobe Stock Image Downloader

Adobe Systems (ADBE) closed at $406.76 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500’s 1.86% gain on the day. Elsewhere, the Dow gained 1.98%, while the tech-heavy Nasdaq added 0.24%.

Coming into today, shares of the software maker had lost 2.34% in the past month. In that same time, the Computer and Technology sector lost 13.4%, while the S&P 500 lost 12.37%.

Adobe Systems will be looking to display strength as it nears its next earnings release. On that day, Adobe Systems is projected to report earnings of $3.30 per share, which would represent year-over-year growth of 8.91%. Meanwhile, our latest consensus estimate is calling for revenue of $4.34 billion, up 13.12% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.58 per share and revenue of $17.83 billion. These totals would mark changes of +8.81% and +12.93%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Adobe Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Adobe Systems is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Adobe Systems is holding a Forward P/E ratio of 29.38. This valuation marks a premium compared to its industry’s average Forward P/E of 28.33.

Story continues

Meanwhile, ADBE’s PEG ratio is currently 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. ADBE’s industry had an average PEG ratio of 2.19 as of yesterday’s close.

The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Adobe Stock Image Downloader

Tagged : , , , , , , , , , , , , , , , , , , , , , , Visit Gig

Related Posts

Uh oh. Looks like you're using an ad blocker. Please, disable it

0