The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The close medium term support offers good timing for purchasing the stock.
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The tendency within the weekly time frame is positive above the technical support level at 254.74 USD
Weaknesses
● With an expected P/E ratio at 49.43 and 38.53 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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Adobe Inc. specializes in the development of software for content design, publication and visual distribution. Net sales break down by product family as follows:
- digital media software (73.3%): primarily creation, illustration, viewing, conversion and digital contents broadcasting;
- online marketing and business process management software (25.2%): web publishing, information security, business resources planning, document production management, application automation software, etc.;
- other (1.5%): software for high-definition printing, online training, etc.
Net sales break down by source of income between sales of subscriptions (94.2%), sales of services 3.4%; consulting, training, maintenance and technical support services) and sales of products (2.4%).
Net sales are distributed geographically as follows: the United States (53.9%), Americas (6.2%), Europe/Middle East/Africa (25.1%) and Asia/Pacific (14.8%).