Is Adobe Stock A Buy Before Earnings? Yes, Negative Surprises Aren't Expected

Dec. 12, 2022 11:38 AM ETAdobe Inc. (ADBE) StockADBE2 Comments
The Value Pendulum
Investing Group Leader

Summary

  • There shouldn't be negative surprises when Adobe reports Q4 FY 2022 earnings this Thursday, as I expect ADBE's fourth quarter adjusted EPS to meet analysts' expectations.
  • The proposed acquisition of Figma should help to expand Adobe's Total Addressable Market or TAM.
  • I raise my rating for ADBE's shares from a Hold to a Buy, as I view Adobe's current valuations as attractive.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Adobe Systems in Munich Germany

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Elevator Pitch

I have a Buy rating assigned to Adobe Inc.'s (NASDAQ:ADBE) shares. Previously, I rated Adobe's stock as a Hold, but Adobe is deserving of a Buy rating now prior to its Q4 FY 2022 (YE November 30) earnings announcement. ADBE's forward P/E valuation

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This article was written by

The Value Pendulum
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The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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