Adobe Trades at 10 Times Next Year's Earnings. Is It Finally Time to Buy the Stock?
A multiple this low usually means the market smells decline -- yet the latest quarter set records.
Adobe's stock is currently trading at $264.02, significantly below its 52-week high of $370.86, and priced at about 15 times its past year's earnings and roughly 10 times analysts' projections for the following year. Despite a 13% revenue growth in the latest quarter, the discrepancy between the stock price and earnings suggests that investors may be questioning whether Adobe is a declining business or a relatively affordable growth stock in the market.
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Also reported by 2 other outlets
- SK Hynix's Stock Trades at Around 5 Times Next Year's Earnings Even After Revenue Grew 257%. Here's What a Multiple That Low Usually Signals About a Cyclical Business. fool.com
- SK Hynix's Stock Trades at Around 5 Times Next Year's Earnings Even After Revenue Grew 257%. Here's What a Multiple That Low Usually Signals About a Cyclical Business. nasdaq.com