Jaap2
1. Introduction
In my article "Why Adobe Could Soar To $800" from August 26, 2020 when Adobe (NASDAQ:ADBE) stock was at $467, I had outlined why ADBE could rise to $800. In the meantime, the stock had peaked as high
Adobe: Why It Could Be A Potential Outperformer
Summary
- ADBE, a beneficiary of an increasing digital transformation and with its services almost indispensable, delivered double-digit growth rates in recent years.
- While the stock seems to be undervalued from a valuation point of view, the technical analysis suggests a probable breakout from its downtrend established since November 2021.
- ADBE's steady revenue and EPS growth combined with its high profitability and strong market position makes it a potential outperformer in the next bull market.
- Investors should be well-advised to accumulate the stock on weakness.
- However, a sustainable recovery of the stock should be highly dependent on the recovery of the general market.
Real Financial Dynamics - Investing In Growth In Every Market Phase. Banker, Investor, Investment Advisor, Wealth Manager, Finance Blogger from Germany.
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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