Adobe Stock: Time To Buy The Dip

Investor's Compass
776 Followers
(10min)

Summary

  • Adobe stock fell 9.1% after its Q3-2024 results, mainly due to slightly lower-than-expected guidance, but the drop seems overdone.
  • Despite the guidance miss, ADBE beat revenue and EPS expectations, showing strong operational performance and cash flow growth.
  • The valuation is now reasonable, implying attainable FCF per share growth over the next decade, making Adobe a long-term buy.

Adobe headquarters in San Jose, California, USA

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Adobe (NASDAQ:ADBE) stock fell by 9.1% in after-hours trading after reporting its Fiscal Q3-2024 results. However, the digital media and design software stock likely didn't deserve to fall by that much. The main reason for the fall was the lower-than-expected guidance, but it

This article was written by

776 Followers
I objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time), as they tend to paint a more realistic picture of the company’s prospects. I have been investing since 2013. Apart from what I’ve learned from experience, my knowledge comes from reading a vast number of stock market books over the years. Some of my favorites include 100 Baggers, Financial Shenanigans, and The Quants.Earlier part of StockBros Research and now writing under this account.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ADBE over 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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