Adobe Stock Buy Hold or Sell Recommendation

ADBE
 Stock
  

USD 376.49  8.01  2.17%   

Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Adobe Systems is 'Buy'. 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. The advice algorithm takes into account all of Adobe Systems' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Adobe Systems' buy-and-hold perspective. Please continue to 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. We conduct extensive research on individual companies such as Adobe and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Adobe Systems.

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. Macroaxis does not own or have any residual interests in Adobe Systems 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

Execute Advice
Sell Adobe SystemsBuy Adobe Systems
Buy

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Adobe Systems has a Risk Adjusted Performance of (0.17), Jensen Alpha of (0.045165), Total Risk Alpha of 0.0303 and Treynor Ratio of (0.22)
Macroaxis provides advice on Adobe Systems to complement and cross-verify current analyst consensus on Adobe Systems. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Adobe Systems is not overpriced, please confirm all Adobe Systems fundamentals, including its shares owned by institutions, price to sales, net income, as well as the relationship between the price to earning and gross profit . Given that Adobe Systems has a price to earning of 36.77 X, we suggest you to validate Adobe Systems market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Adobe Systems Trading Alerts and Improvement Suggestions

Adobe Systems generated a negative expected return over the last 90 days
Adobe Systems is unlikely to experience financial distress in the next 2 years
Adobe Systems has a strong financial position based on the latest SEC filings
Over 85.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.marketscreener.com: ADOBE INC. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Marketscreener.com

Adobe Systems current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Adobe analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Adobe analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price563.70
Target Median Price570.00
Target High Price650.00
Recommendation Mean1.90
Number Of Analyst Opinions27
Target Low Price455.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Adobe Systems Returns Distribution Density

The distribution of Adobe Systems' historical returns is an attempt to chart the future uncertainty of Adobe Systems' future price movements. The chart of the probability distribution of Adobe Systems stock daily returns describes the distribution of returns around its average expected value. We use Adobe Systems 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 stock.
Mean Return-0.32Value At Risk-4.05
Potential Upside4.28Standard Deviation2.67
 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

Have you ever been surprised when a price of an equity instrument such as Adobe Systems is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Adobe Systems backward and forwards among themselves. Adobe Systems' institutional investor refers to the entity that pools money to purchase Adobe Systems' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Park National CorpCommon Shares10.7 K3.9 M
Chemung Canal Trust CoCommon Shares9.1 K3.3 M
Vanguard Group IncCommon Shares38.5 M17.5 B
Blackrock IncCommon Shares37.5 M17.1 B
State Street CorpCommon Shares19.1 M8.7 B
Fmr LlcCommon Shares17.6 MB
Geode Capital Management LlcCommon SharesM4.1 B
Note, although Adobe Systems' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

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 Technology 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 stock's 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
-0.05
β
Beta against DOW1.49
σ
Overall volatility
2.74
Ir
Information ratio -0.05

Adobe Systems Volatility Alert

Adobe Systems exhibits very low volatility with skewness of -0.11 and kurtosis of -0.1. However, we advise investors to further study Adobe Systems technical indicators to make sure all market info is available and is reliable. 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 bullying 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 stocks as prices fall.

Adobe Systems Implied Volatility

Adobe Systems' implied volatility exposes the market's sentiment of Adobe Systems 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
FundamentalsAdobe SystemsPeer Average
Return On Equity35.33 %(0.31) %
Return On Asset14.54 %(0.14) %
Profit Margin29.90 %(1.27) %
Operating Margin40.40 %(5.51) %
Current Valuation187.05 B16.62 B
Shares Outstanding475.8 M571.82 M
Shares Owned by Insiders0.41 %10.09 %
Shares Owned by Institutions85.17 %39.21 %
Number of Shares Shorted6.02 M4.71 M
Price to Earning36.77 X28.72 X
Price to Book11.85 X9.51 X
Price to Sales10.86 X11.42 X
Revenue16.14 B9.43 B
Gross Profit13.92 B27.38 B
EBITDA6.52 B3.9 B
Net Income4.83 B570.98 M
Cash and Equivalents4.7 B2.7 B
Cash per Share9.95 X5.01 X
Total Debt4.66 B5.32 B
Debt to Equity0.34 %48.70 %
Current Ratio1.04 X2.16 X
Book Value Per Share31.09 X1.93 K
Cash Flow from Operations7.23 B971.22 M
Short Ratio2.06 X4.00 X
Earnings Per Share10.02 X3.12 X
Price to Earnings To Growth2.00 X4.89 X
Number of Employees25.99 K18.84 K
Beta1.05-0.15
Market Capitalization175.32 B19.03 B
Total Asset12.71 B29.47 B
Retained Earnings10.97 B9.33 B
Working Capital3.03 B1.48 B
Current Asset5.84 B9.34 B
   Exercise or conversion by Wadhwani David of 7732 shares 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 Distribution138867.0
Daily Balance Of Power0.4286
Rate Of Daily Change1.02
Day Median Price369.17
Day Typical Price371.61
Market Facilitation Index0.0
Price Action Indicator11.32

About Adobe Systems Buy or Sell Advice

When is the right time to buy or sell Adobe Systems? 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 stock 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. Although Adobe Systems investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2010 2017 2021 2022 (projected)
Accounts Payable113.54 M312 M186.26 M155.15 M
Receivables1.22 B1.88 B1.32 B1.11 B

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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.

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Government
Government Theme
Funds or Etfs that invest in fixed income securities issued by national government to finance government spending or to facilitate Federal Reserve monetary policies. The Government theme has 40 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Government Theme or any other thematic opportunities.
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Please continue to 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 that the Adobe Systems information on this page should be used as a complementary analysis to other Adobe Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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When running Adobe Systems price analysis, check to measure Adobe Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Adobe Systems is operating at the current time. Most of Adobe Systems' value examination focuses on studying past and present price action to predict the probability of Adobe Systems' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Adobe Systems' price. Additionally, you may evaluate how the addition of Adobe Systems to your portfolios can decrease your overall portfolio volatility.
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Is Adobe Systems' industry 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.
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 Adobe Systems value 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.