Revisiting a Resurgent Software Stock

ADBE is up 20% this quarter

facebook twitter linkedin


When we last checked in with Adobe Inc. (NASDAQ:ADBE) earlier this summer, the software stock was gearing up for its second-quarter earnings report. Now, roughly two months later, ADBE is in focus once more. 

Adobe stock is up 20% this quarter alone, toppling all sorts of descending short-term trendlines that had served as resistance. And despite a 30% year-over-year deficit, 19 of 22 brokerages rate ADBE  a "buy" or better, with zero "sells" on the books. 

ADBE Stock Chart

ADBE continues to maintain a rich valuation at a forward price-earnings ratio of 28.17 and a price-sales ratio of 12.73. Nonetheless, Adobe stock provides a solid set of fundamentals for long-term investors; company holds a manageable balance sheet with $5.3 billion in cash and $4.66 billion in total debt.

ADBE offers an attractive growth rate, having increased its annual revenues and net income 84.9% and 88.7%, respectively, since fiscal 2018. Adobe is also expected to report 11.9% revenue growth and 8.3% earnings growth for fiscal 2022. Furthermore, the computer software company is estimated to see a 13.9% increase in revenues and a 17.3% increase in earnings in fiscal 2023, making Adobe stock a viable option for growth investors.

Options are certainly an intriguing route, per the security's Schaeffer's Volatility Scorecard (SVS) at a 96 out of 100, meaning Adobe stock has exceeded option traders' volatility expectations in the past year.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners