With earnings out of the way, is Adobe ready to climb again?
Software giant Adobe (Nasdaq: ADBE) reported earnings on September 17 and the company beat on the top and bottom line. The company was expected to report EPS of $1.42 and the actual figure came in at $1.61. The reported revenue beat by $10 million at $2.83 billion. Despite the beat, the stock dipped slightly after the report as the company’s guidance was a little disappointing. Personally I think that was because expectations were pretty high for Adobe heading in to the report.
Now that the earnings report is out of the way, is the stock ready to resume its upward trend? If we look at the weekly chart we can see how the stock trended higher from late 2016 through the third quarter of 2018. The stock pulled back in the fourth quarter before starting a new uptrend from December through mid-July. In late July the stock started pulling back from its overbought levels.
Now we see that the weekly stochastic readings are reaching oversold territory and are as low as they have been in the last three and a half years. The 10-week RSI dipped below the 50 level and that is something that hasn’t happened all that often in recent years.
Something else that stands out on the chart is the fact that the stock has only been below its 52-week moving average on a few occasions. The stock is approaching that trend line at this time. With the lower rail of the trend channel and the 52-week moving average in place as possible support, the stock may be ready to move higher again.
In addition to the setup on the weekly chart, the Moving Average Convergence Divergence (MACD) Histogram just turned positive. According to Tickeron’s Technical Analysis Overview, in 32 of 47 cases where Adobe's MACD histogram became positive, the price rose further within the following month. The odds of a continued uptrend are 68%.
Turning our attention to the fundamentals, Adobe has performed really well over the last few years. The company has seen earnings grow by an average of 43% per year over the last three years while sales have grown by 24% per year. In the most recent report, earnings were up 18% and sales were up 24%. Analysts expect earnings to grow by 16% for 2019 as a whole while sales are expected to increase by 23.5%.
Adobe’s management efficiency measurements are well above average with a return on equity of 37.8% and a profit margin of 39.6%. When we combine these figures with the sales growth, we get the SMR rating from Tickeron. Adobe’s SMR rating is 12 and that indicates very strong sales and a profitable business model.
We also see that the Tickeron Profit vs. Risk Rating for Adobe is 13, indicating low risk on high returns. The average Profit vs. Risk Rating for the industry is 79, placing this stock much better than average.
Looking at the sentiment toward Adobe, 19 out of 30 analysts have the stock rated as a “buy” while 11 have it rated as a “hold”. This puts the buy percentage at 63.3% and that is slightly below average which is hard to believe considering how well Adobe has performed as a company and how well the stock has performed in recent years.
The short interest ratio is at 2.63 currently and that is slightly below the average stock. However, for Adobe this is one of the highest readings in the past year and the ratio has been trending higher over the last few months. The three highest readings in the past year have all come in the last two months. This suggests that the bearish sentiment toward the stock is increasing and that is a good thing from a contrarian perspective.
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
ADBE's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for ADBE turned positive on August 20, 2026. Looking at past instances where ADBE's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 13, 2026. You may want to consider a long position or call options on ADBE as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
ADBE moved above its 50-day moving average on July 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ADBE crossed bullishly above the 50-day moving average on July 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADBE advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 199 cases where ADBE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for ADBE moved out of overbought territory on August 11, 2026. 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 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 of 62 cases within the following month. The odds of a continued downward trend are .
ADBE broke above its upper Bollinger Band on July 28, 2026. 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)
The Tickeron SMR rating for this company is (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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 Valuation Rating of (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 (9.452) is normal, around the industry mean (28.672). P/E Ratio (15.670) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (0.667) is also within normal values, averaging (1.753). Dividend Yield (0.000) settles around the average of (0.046) among similar stocks. P/S Ratio (4.500) is also within normal values, averaging (70.832).
The Tickeron PE Growth Rating for this company is (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 (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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