Subscribe to Entrepreneur for $5
Subscribe

Adobe (ADBE) Opportunity

The compelling growth narrative that this leading cloud player has been able to manufacture in recent years has made ADBE a buy at almost any valuatio...

By
This story originally appeared on Zacks

Adobe ADBE demonstrated a tremendous earnings report with record figures on both top and bottom lines, yet its share price tumbled. Its thriving subscription-based revenue has been powering tremendously consistent topline growth, with financial visibility that justifies it's otherwise outrageous 50x P/E.

- Zacks

Management raised its guidance, which catalyzed a slew of upwardly revised EPS estimates across every timeline and pushed ADBE into a Zacks Rank #2 (Buy). Despite the outstanding report, investors pulled profits, and with the recent weakness in tech, we've seen the stock slide over 10% in just one week.

The compelling growth narrative that this leading cloud player has been able to manufacture in recent years has made ADBE a buy at almost any valuation. ADBE is now trading 14% off its all-time high, and I see this as an excellent buying opportunity to start or add to a position.



5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Adobe Inc. (ADBE): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research