Adobe (ADBE, $484.72) beats Q3 earnings expectations
Adobe Systems Inc. reported third quarter earnings that surpassed analysts’ expectations.
The software company's adjusted earnings came in at $2.57 per share, compared to the $2.41 per share expected by analysts polled by Thomson Reuters.
Adobe’s quarterly revenue climbed +14.1% year-over-year to $3.23 billion.
For the quarter ahead, the company is expecting earnings of $2.64 per share on revenue of $3.35 billion.
Tickeron's AI-powered scorecard rates ADBE a 'Buy'.
According to Tickeron.
Aroon Indicator for ADBE shows an upward move is likely
ADBE's Aroon Indicator triggered a bullish signal on September 14, 2020. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 448 similar instances where the Aroon Indicator showed a similar pattern. In 319 of the 448 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 71%.
Current price $484.99 is above $449.57 the highest support line found by A.I. Throughout the month of 08/13/20 - 09/15/20, the price experienced a +11% Uptrend. During the week of 09/08/20 - 09/15/20, the stock enjoyed a +8% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 22 of 39 cases where ADBE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 81%.
Following a +5.58% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADBE advanced for three days, in 254 of 361 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The 10-day RSI Indicator for ADBE moved out of overbought territory on September 03, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 65 similar instances where the indicator moved out of overbought territory. In 30 of the 65 cases, the stock moved lower in the following days. This puts the odds of a move lower at 46%.
The Momentum Indicator moved below the 0 level on September 08, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on ADBE as a result. In 38 of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 43%.
The Moving Average Convergence Divergence Histogram (MACD) for ADBE turned negative on September 08, 2020. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 25 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
ADBE broke above its upper Bollinger Band on August 26, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 62%. During the last month, the daily ratio of advancing to declining volumes was 1.12 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 2 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 5 (best 1 - 100 worst), indicating outstanding price growth. ADBE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 12 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 35 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (21.95) is normal, around the industry mean (12.87). P/E Ratio (65.63) is within average values for comparable stocks, (296.17). Projected Growth (PEG Ratio) (1.24) is also within normal values, averaging (7.02). Dividend Yield (0.00) settles around the average of (0.31) among similar stocks. P/S Ratio (15.61) is also within normal values, averaging (16.14).
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ADBE's RSI Oscillator climbs out of oversold territory
The RSI Oscillator for ADBE moved out of oversold territory on September 29, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 40 similar instances when the indicator left oversold territory. In 27 of the 40 cases the stock moved higher. This puts the odds of a move higher at 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 45 of 69 cases where ADBE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 65%.
Following a +3.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADBE advanced for three days, in 199 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
ADBE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ADBE as a result. In 60 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for ADBE turned negative on September 03, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 39 similar instances when the indicator turned negative. In 25 of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at 64%.
ADBE moved below its 50-day moving average on September 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ADBE crossed bearishly below the 50-day moving average on September 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 72%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADBE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The Aroon Indicator for ADBE entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 61 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.806) is normal, around the industry mean (51.456). P/E Ratio (12.898) is within average values for comparable stocks, (82.636). Projected Growth (PEG Ratio) (0.558) is also within normal values, averaging (3.135). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (3.923) is also within normal values, averaging (69.875).
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. ADBE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ADBE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a developer of software solutions for web and print publishing
Industry PackagedSoftware
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