Adobe Stock for a purchase? Bull body in focus News ad

Adobe today

$ 374.63 -0.35 (-0.09%)

As of 05.05.2025 20:00 on the Eastern

52-week range

$ 332,01

▼

$ 587.75

P/e ratio.

30.21

Value is valuable

$ 502.88

Each investor now knows about current moods around the technological sector. The endless wave of volatility and negativity took possession of the best and most expensive names in space due to the recent deployment of President Trump Trading tariffs Against some of the largest trading partners in the United States economy, in particular, China and other Asian power engineers.

However, not all this Technological promotions should be excluded from the equation and processed (or considered) with the same volume of potential winds and negativity, since some of them are by nature immune to the influence of these Trading tariffs And the uncertainty that they cause in the global economy, or, more importantly, in the potential of future income per share (EPS) for these companies.

One of these names Adobe Inc. NASDAQ: AdbeThis field Software company Sources are most of its operations in the United States. As investors learn a little, this name is far from the dangers of economic uncertainty for many reasons.

Nevertheless, the main pillar of power in turning it into a potential purchase can be seen deep into business models and its fundamental topics during the last quarters.

Safety of business -models Adobe

First of all, Adobe is a service company. He does not import and does not export any kind of chips or semiconductor equipment This can be subject to these recently placed tariffs, so there is nothing to worry about uncertainty and potential ceilings in obtaining energy.

Otherwise, Adobe follows Most of his income from subscriptionsWhat makes its main financial structure much more stable and predictable compared to other names in space, which rely on sales and units delivered in other countries, most of which, in fact, are subject to these trade tariffs.

With this in mind, investors can see how Adobe is relatively immune to Bear theses around technological actions. However, power Potential purchase Does not stop with a business model.

An indisputable opportunity

Now that Adobe shares have fallen to a minimum 63% of their 52-week maximumsSome may argue that the worst scenario has already been evaluated, despite the fact that this view has nothing to do with the company, as has already been discussed. This logically leaves investors to have nothing but the potential of growth remaining from this discount.

But what leads to an increase in the price behind the scenes? Having looked at the last quarterly income report, experienced investors should notice several things. First of all Record income of $ 5.7 billion During the first quarter of 2025, growth rates of 10% over the past 12 months.

As investors know, most of this income comes from subscriptions that allow management to effectively allocate this left capital for further growth and compilation of funds in the company. This topic can be defined quantitatively by studying the free cash flow of the same period (operational cash flow minus capital costs).

Last year, Adobe generated 1.1 billion dollars in a free cash flowCompared to the last message about the free cash flow, $ 2.4 billion. The United States over the last quarter is more than half. This increase directly affects the profitability of the capital that investors can expect, and the growth rate of income per share (EPS).

As for EPS, Adobe managed to ensure a four -fold increase in the year, while Promotions fell into a clean 20% in the same period. Too much effort is not required or convinced to know that the discrepancies of this size between the shares price indicators and the basic growth of earnings Provide great opportunities.

And this opportunity, in particular, is already picked up by some bold and wishing customers.

Smart money loves Adobe shares

At the end of April 2025, Bank New Yorka Mellon I decided to increase its shares in Adobe shares by as many as 14.4%, today bringing a clean position to $ 2.5 billion. When creating their views, retail investors can perceive this as a sign of confidence that actions can make in the coming months and quarters.

However, the topic does not stop there; Wall analysts -stroke preserved Consensus Price up to $ 502.9 per share On Adobe shares, despite a two -digit percentage decrease during the year. This call implies that the company can rally as many as 35% of the place where it is traded today. This is unusual behavior for analysts, prone to risk, who rarely return such a worsening name like this.

In general, now there are asymmetric installations in Adobe Stock For those who want to buy, with the same basic evidence confirming such a decision in the future. Double growth is waiting for this Empire tariff name today; The question is how long the opportunity will last.

Before considering Adobe, you will want to hear this.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before the wider market is won … and Adobe was not on the list.

While Adobe is currently a moderate purchase rating among analysts, analysts engaged in a high -ranking rating believe that these five promotions are better buying.

View five shares here

Study the basics of options trading and how to use them to increase profitability and risk management using this free report from Marketbeat. Click on the link below to get a free copy.

Get this free report

Like this article? Share this with a colleague.

The link is copied to the exchange buffer.