The stocks rallied during the last several weeks after plunging to the historical lows due to the coronavirus pandemic. However, new tensions threaten markets. The relationship between the U.S. and China is deteriorating quickly. Traders fear that the trade deal will suffer if the countries can’t reach a consensus.
Furthermore, there are volatile demonstrations in the United States, protesting the death of an unarmed black man in police custody. George Floyd died shortly after he was pinned under the knee of a police officer. President Trump announced that he wouldn’t stand for anarchy in U.S. streets. His promise relieved investors, and the stocks climbed up again. However, the turmoil still continues.
However, stock markets are still functioning, and the trading doesn’t stop. In times such as these, analysts advise buying stocks, which are strong enough to weather the crisis if another one is about to arise. If you plan to add something worthwhile to your portfolio, then you have an excellent opportunity to grab Adobe stock. It is among the several futures, which experts dubbed as a Best Buy in June.
Which investors should consider Adobe?
However, please take into account that Adobe is a large-cap growth stock, and it doesn’t offer any dividends. Hardcore income investors probably will prefer to avoid it because of that. But Adobe is a perfect choice for enterprising investors, who are looking for a long-term investment.
The company’s software features have become vital for designers, film-makers, creators, photographers, and publishers of all sorts. As a result, Adobe has had a rapid earnings growth. Its revenues have compounded at a 22% annualized rate in the last five years. Furthermore, the earnings growth has almost tripled that, surging forward by 63% annually.
The stock achieved record quarterly revenues of more than $3 billion for the first quarter of this year, despite the coronavirus crisis. That number represents 19% year-over-year growth.
Adobe’s suite of products, including Photoshop, Premiere, Illustrator, and InDesign, has become invaluable for many users. While the stock’s growth can’t continue forever at the current rate, these products will keep bringing in income for Adobe for a long time still.
