Adobe Systems Incorporated Stock Buy Hold or Sell Recommendation
| ADBE Stock | USD 504.38 4.88 0.98% |
Given the investment horizon of 90 days and your below-average risk tolerance, our recommendation regarding Adobe Systems Incorporated is 'Cautious Hold'. Macroaxis provides Adobe Systems buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ADBE positions.
Check out Adobe Systems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Adobe and provide practical buy, sell, or hold advice based on investors' constraints. Adobe Systems Incorporated. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Adobe |
Execute Adobe Systems Buy or Sell Advice
The Adobe recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Adobe Systems Incorporated. Macroaxis does not own or have any residual interests in Adobe Systems Incorporated or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Adobe Systems' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Adobe Systems Trading Alerts and Improvement Suggestions
| Adobe Systems generated a negative expected return over the last 90 days | |
| Over 85.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Altman Advisors Inc. Acquires New Holdings in Adobe Inc. |
Adobe Systems Returns Distribution Density
The distribution of Adobe Systems' historical returns is an attempt to chart the uncertainty of Adobe Systems' future price movements. The chart of the probability distribution of Adobe Systems daily returns describes the distribution of returns around its average expected value. We use Adobe Systems Incorporated price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Adobe Systems returns is essential to provide solid investment advice for Adobe Systems.
| Mean Return | -0.16 | Value At Risk | -2.89 | Potential Upside | 2.87 | Standard Deviation | 1.92 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Adobe Systems historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Adobe Stock Institutional Investors
| Shares | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 4.7 M | Northern Trust Corp | 2024-09-30 | 4.6 M | Bank Of America Corp | 2024-06-30 | 4.6 M | Amundi | 2024-06-30 | 4.3 M | Amvescap Plc. | 2024-06-30 | 4.2 M | Alliancebernstein L.p. | 2024-06-30 | 4.1 M | Legal & General Group Plc | 2024-06-30 | 4.1 M | Goldman Sachs Group Inc | 2024-06-30 | 3.4 M | Edgewood Management Llc | 2024-09-30 | 3.4 M | Vanguard Group Inc | 2024-09-30 | 41 M | Blackrock Inc | 2024-06-30 | 38.6 M |
Adobe Systems Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 164.7M | (202M) | 450M | 208M | 239.2M | 251.2M | |
| Change In Cash | 1.8B | (634M) | 392M | 2.9B | 3.3B | 3.5B | |
| Free Cash Flow | 5.3B | 6.9B | 7.4B | 6.9B | 8.0B | 8.4B | |
| Depreciation | 757M | 788M | 856M | 872M | 1.0B | 1.1B | |
| Other Non Cash Items | 116M | 76M | 122M | 65M | 74.8M | 50.3M | |
| Capital Expenditures | 419M | 330M | 442M | 360M | 414M | 434.7M | |
| Net Income | 5.3B | 4.8B | 4.8B | 5.4B | 6.2B | 6.6B | |
| End Period Cash Flow | 4.5B | 3.8B | 4.2B | 7.1B | 8.2B | 8.6B | |
| Change To Netincome | 756.6M | 2.4B | 1.3B | 1.8B | 2.1B | 2.2B | |
| Investments | 5M | (3.5B) | (570M) | 776M | 892.4M | 937.0M | |
| Change Receivables | (187.8M) | 106M | (430M) | (198M) | (178.2M) | (169.3M) |
Adobe Systems Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Adobe Systems or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Adobe Systems' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Adobe stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.24 | |
β | Beta against Dow Jones | 0.78 | |
σ | Overall volatility | 1.94 | |
Ir | Information ratio | -0.13 |
Adobe Systems Volatility Alert
Adobe Systems Incorporated exhibits very low volatility with skewness of -1.16 and kurtosis of 5.25. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Adobe Systems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Adobe Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Adobe Systems Implied Volatility
Adobe Systems' implied volatility exposes the market's sentiment of Adobe Systems Incorporated stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Adobe Systems' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Adobe Systems stock will not fluctuate a lot when Adobe Systems' options are near their expiration.
Adobe Systems Fundamentals Vs Peers
Comparing Adobe Systems' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Adobe Systems' direct or indirect competition across all of the common fundamentals between Adobe Systems and the related equities. This way, we can detect undervalued stocks with similar characteristics as Adobe Systems or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Adobe Systems' fundamental indicators could also be used in its relative valuation, which is a method of valuing Adobe Systems by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Adobe Systems to competition |
| Fundamentals | Adobe Systems | Peer Average |
| Return On Equity | 0.35 | -0.31 |
| Return On Asset | 0.16 | -0.14 |
| Profit Margin | 0.26 % | (1.27) % |
| Operating Margin | 0.37 % | (5.51) % |
| Current Valuation | 218.44 B | 16.62 B |
| Shares Outstanding | 440.2 M | 571.82 M |
| Shares Owned By Insiders | 0.20 % | 10.09 % |
| Shares Owned By Institutions | 85.48 % | 39.21 % |
| Number Of Shares Shorted | 6.46 M | 4.71 M |
| Price To Earning | 32.74 X | 28.72 X |
| Price To Book | 15.12 X | 9.51 X |
| Price To Sales | 10.50 X | 11.42 X |
| Revenue | 19.41 B | 9.43 B |
| Gross Profit | 15.44 B | 27.38 B |
| EBITDA | 6.65 B | 3.9 B |
| Net Income | 5.43 B | 570.98 M |
| Cash And Equivalents | 5.76 B | 2.7 B |
| Cash Per Share | 12.40 X | 5.01 X |
| Total Debt | 4.08 B | 5.32 B |
| Debt To Equity | 0.32 % | 48.70 % |
| Current Ratio | 1.14 X | 2.16 X |
| Book Value Per Share | 32.69 X | 1.93 K |
| Cash Flow From Operations | 7.3 B | 971.22 M |
| Short Ratio | 2.44 X | 4.00 X |
| Earnings Per Share | 11.79 X | 3.12 X |
| Price To Earnings To Growth | 1.62 X | 4.89 X |
| Target Price | 612.02 | |
| Number Of Employees | 29.95 K | 18.84 K |
| Beta | 1.3 | -0.15 |
| Market Capitalization | 219.88 B | 19.03 B |
| Total Asset | 29.78 B | 29.47 B |
| Retained Earnings | 33.35 B | 9.33 B |
| Working Capital | 2.83 B | 1.48 B |
Note: Disposition of 3837 shares by Daniel Durn of Adobe Systems subject to Rule 16b-3 [view details]
Adobe Systems Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Adobe . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 60867.09 | |||
| Daily Balance Of Power | 0.3154 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 500.84 | |||
| Day Typical Price | 502.02 | |||
| Price Action Indicator | 5.98 | |||
| Period Momentum Indicator | 4.88 | |||
| Relative Strength Index | 52.03 |
About Adobe Systems Buy or Sell Advice
When is the right time to buy or sell Adobe Systems Incorporated? Buying financial instruments such as Adobe Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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In addition to having Adobe Systems in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Adobe Systems Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Adobe Systems. If investors know Adobe will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Adobe Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.233 | Earnings Share 11.79 | Revenue Per Share 46.482 | Quarterly Revenue Growth 0.106 | Return On Assets 0.1597 |
The market value of Adobe Systems is measured differently than its book value, which is the value of Adobe that is recorded on the company's balance sheet. Investors also form their own opinion of Adobe Systems' value that differs from its market value or its book value, called intrinsic value, which is Adobe Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Adobe Systems' market value can be influenced by many factors that don't directly affect Adobe Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Adobe Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Adobe Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adobe Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.