Is Adobe Stock Underperforming the S&P 500?

Kritika Sarmah Barchart Fri May 30, 4:58AM CDT
Adobe Inc logo on phone on desk-by Tattoboo via Shutterstock

With a market cap of $163.4 billion, Adobe Inc. (ADBE) is a diversified software company operating through Digital Media, Digital Experience, and Publishing and Advertising segments. The San Jose, California-based company operates as one of the largest software companies in the world.

Companies worth $10 billion or more are generally described as "large-cap stocks." Danaher fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the software industry. Adobe benefits from its Document Cloud and Creative Cloud offerings, which allow subscribers to use its creative products and applications, renowned worldwide as the premier choice for artistic use.

The software giant's stock dropped nearly 29.7% from its 52-week high of $587.75 touched on Sept. 12. ADBE’s stock has declined 5.8% in the past three months, lagging behind the S&P 500 Index’s ($SPX) marginal decrease.

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ADBE has declined over 19.5% on a YTD basis, whereas $SPX is up marginally. Moreover, shares of ADBE tanked 13.6% over the past 52 weeks, underperforming the SPX's nearly 11.4% rise over the same time frame.

Additionally, ADBE has been trading below its 200-day moving average since mid-December and above its 50-day moving average since mid-May.

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Adobe’s stock prices grew 1.1% following the release of its mixed Q1 results on Mar. 12. Driven by solid momentum, the company’s total revenues for the quarter surged 10.3% year-over-year to $5.7 billion, surpassing the Street’s expectations. Meanwhile, the company’s non-GAAP net income grew 8.7% year-over-year to $2.2 billion. ADBE’s adjusted EPS for the quarter came in at $4.28 and surpassed the consensus estimates by 5.2%.

In the softwaare arena, top rival, Salesforce, Inc. (CRM), declined 10.4% over the past three months and 1.1% over the past year, outperforming the stock.

Among the 33 analysts covering the ADBE stock, the consensus rating is a “Moderate Buy.” Its mean price target of $502.20 suggests a 21.5% upside potential from current price levels.


On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.