Adobe stock skyrocketed by 38% in 2020 and by 60% since mid-March. Analysts think that the firm’s revenue may jump up by 14% in FY20 and another 15% in FY21. That would stretch its streak of double-digit growth to seven years. According to forecasts, Adobe’s adjusted earnings may jump by 24% and 13%, respectively, over this same stretch.
Furthermore, the company’s Digital Media division rallied by 18%. This brought back roughly 2.6 million shares during the quarter at the time.
Adobe is one of the strongest stocks. Its suite of design and creative software, which are sold on a subscription basis to businesses, to individuals, and even schools, includes Illustrator, Photoshop, Lightroom, and many others.
The company’s multiple cloud-based creative software offerings are considered irreplaceable by lots of people. Some think that its Creative Cloud offering and bundle packages are as important as Microsoft’s Office suite.
Adobe overcame its Q2 fiscal 2020 estimates last month, with sales soaring by 14% and adjusted earnings rallying by 34%. The company sold business-focused platforms and solutions for commerce, marketing, and more, as well as its e-signature units and PDF.
What is happening in the stock market?
The stock market traded on the bullish territory on Monday, even though concerns about rapidly spreading coronavirus damaged positive sentiment. Traders preferred to invest in big tech stocks that appear more immune to the broader economic downfall for both growth and safety.
Meanwhile, the Nasdaq surged forward by 2.5% during the last session. The tech portion of the S&P 500 may see its second-quarter earnings sink by -13% on -1% lower sales, which is a good result, considering that total S&P 500 earnings are projected to collapse by -44.9% from the same period last year on -10.5% sales.
The Tech sector looks poised to remain strong for the time being. Adobe is only one of many successful stocks. Additionally, according to analysts, it is a Buy right now.