In the latest trading session, Adobe Systems (ADBE) closed at $485.03, marking a -1.64% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.92%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 1.6%.

Heading into today, shares of the software maker had lost 5.91% over the past month, lagging the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.68% in that time.

The upcoming earnings release of Adobe Systems will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.66, reflecting a 9.13% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.54 billion, indicating a 9.71% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.28 per share and a revenue of $21.44 billion, representing changes of +13.75% and +10.46%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. Adobe Systems currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Adobe Systems is currently trading at a Forward P/E ratio of 26.98. This represents a discount compared to its industry's average Forward P/E of 29.68.

It's also important to note that ADBE currently trades at a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.46 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.