The stock market traded mostly in the green on Monday. Overall, the Nasdaq gained 2.5% during the last session. However, concerns about rapidly spreading coronavirus damaged the positive sentiment. As a result, investors have continued to sink money into big tech stocks that appear more immune to the broader economic downfall for both growth and safety.
According to reports, the tech portion of the S&P 500 may see its second-quarter earnings sink -13% on -1% lower sales, which isn’t a bad result, considering that total S&P 500 earnings are projected to plunge -44.9% from the same period last year on -10.5% sales.
So far, tech looks poised to remain a strong sector. There are some stocks in this sector that are a good buy right now. Adobe is one of them.
Why do experts recommend this stock?
Adobe is an already well-established name. Its multiple cloud-based creative software offerings are what lots of people consider irreplaceable. Adobe’s suite of design and creative software, which are sold on a subscription basis to businesses, individuals, and even schools, includes Photoshop, Lightroom, Illustrator, and many others. Some even view its Creative Cloud offering and its bundle packages in a similar light as Microsoft’s Office suite.
Furthermore, the company sells business-focused platforms and solutions for commerce, marketing, and more, alongside its e-signature units and PDF. Adobe surpassed its Q2 fiscal 2020 estimates last month, with sales rising by 14% and adjusted earnings soaring by 34%.
It’s Digital Media division grew by 18%, bringing back roughly 2.6 million shares during the quarter at the time.
Overall, Adobe stock rallied by 38% in 2020 and 60% since mid-March. According to forecasts, the firm’s revenue may jump by 14% in FY20 and another 15% in FY21. That would stretch its streak of double-digit growth to seven years. Analysts also expect Adobe’s adjusted earnings to jump by 24% and 13%, respectively, over this same stretch. Adobe amassed gains during the last months. Is it a Buy?