ADBE

In this article we share our list of the 10 best software stocks to buy now. The world is seeing a software revolution as every business scrambles to adapt automation, Cloud computing, e-commerce and digital presence. You can skip our detailed discussion of why you should invest in software stocks for big gains and go […]

In the latest trading session, Adobe Systems (ADBE) closed at $472.44, marking a +0.09% move from the previous day.

Kash Rangan, who spent 15 years covering technology stocks at BofA Securities, also gives Sell ratings to Autodesk and Oracle.

Enterprises are realizing the importance of cloud computing like never before. The rapid transition to the cloud helped organizations adopt remote working and ensured that businesses were not interrupted by the pandemic-induced restrictions. Several companies offering cloud-based applications and tools experienced strong demand last year and continue to see favorable trends as enterprises are now more aware of the benefits of the cloud. Using the TipRanks Stock Comparison tool, we will place two cloud-based SaaS (Software as a Service) companies, Autodesk and Adobe, alongside each other and select the stock offering a more attractive investment opportunity. Autodesk (ADSK) Autodesk offers design software and services that are extensively used in the architecture, engineering and construction, manufacturing, digital media and entertainment industries. The company’s transition in recent years from a perpetual license revenue model to a cloud-based subscription model has worked in its favor and is expected to drive profitability over the long-term. In 3Q FY21 (ended Oct.31), Autodesk experienced strong enterprise deal activity, improved subscription renewal rates, robust digital sales, and sequential improvement in new business trends. Third quarter subscription revenue increased 24% to $884 million and overall revenue was up 13% to $952 million despite demand softness in some regions. Also, adjusted EPS spiked 33.3% year-over-year to $1.04 as the operating margin expanded 300 basis points. Diving into other key metrics, recurring revenue accounted for 97% of 3Q overall revenue and net revenue retention rate was within the 100%-110% range. Current RPO (Remaining Performance Obligation), which indicates the revenue expected to be recognized in the next twelve months, came in at $2.4 billion, reflecting a 16% rise. Overall, the company ended the quarter with a total RPO of $3.6 billion (up 21%). Looking ahead, Autodesk predicts FY21 revenue growth of 15% (based on the mid-point of the guidance range) and FY22 revenue growth in the low- to-mid-teens range. (See ADSK stock analysis on TipRanks) On Jan. 5, KeyBanc analyst Jason Celino increased the price target on Autodesk to $345 from $310 and reiterated a Buy rating. The analyst noted that despite the company's higher growth profile and expanding margins, it still trades at a five-turn discount to the broader industrial software average of 38 times 2022 EV(enterprise value)/free cash flow valuation multiple. Celino believes that Autodesk's market dominance in architecture, its fundamentals, and long-term growth prospects remain "underappreciated" and deserve a premium valuation. Overall, the consensus among analysts is a Strong Buy based on 11 Buys and 2 Holds. With the stock rising about 61% over the past 52 weeks, the average price target of $319 indicates a modest upside potential of 2.6% from current levels. Adobe (ADBE) Adobe is one of the most diversified software companies, which caters to the requirements of students to large corporations, with several applications under its Adobe Creative Cloud, Adobe Document Cloud and Adobe Experience Cloud products. The shift towards all things digital has increased the importance of Adobe’s products and solutions. Amid a favorable business environment, Adobe is well-positioned to capitalize on the massive opportunities across its key businesses. The company expects its total addressable market for Creative Cloud, Document Cloud and Adobe Experience Cloud to increase to about $41 billion, $21 billion and $85 billion, respectively, in 2023. (See ADBE stock analysis on TipRanks) In FY20 (ended Nov. 27, 2020), Adobe’s revenue grew 15% to about $13 billion, with subscription revenue rising 21% to $11.6 billion. Specifically, revenue from the company’s largest segment—Digital Media (which includes Creative Cloud and Document Cloud offerings) rose 20% to $9.2 billion, due to increased digital engagement amid the work-from-home environment. Meanwhile, revenue from the Digital Experience segment grew 12% to $3.13 billion, while revenue from the Publishing and Advertising segment was down 24% to $510 million. All in all, strong top-line growth and operating margin expansion fueled a 28% gain in FY20 adjusted EPS to $10.10. The company ended FY20 with Remaining Performance Obligation or RPO of $11.3 billion, implying a 15% increase driven by new contracts and renewals in the Digital Media and Digital Experience offerings. Turning to FY21, Adobe expects its revenue to come in at $15.15 billion, based on 19% growth in the Digital Media as well as the Digital Experience segment. Following the company’s 4Q and FY20 results, Oppenheimer analyst Brian Schwartz reiterated a Buy rating on Adobe with a price target of $550. The analyst believes that the company’s fundamentals remain solid based on “steady Digital Media strength, good midmarket recovery commentary, record cash flow, and strong growth in other key metrics” in 4Q. That said, the 5-star analyst also highlighted some unfavorable trends, including a slowdown in organic growth as indicated by the company’s FY21 guidance and moderating growth trends in RPO, ARR (Annualized Recurring Revenue), revenue and billings. Overall, Schwartz is bullish on the stock and concluded, “The durability of Adobe's growth and FCF model, along with a large TAM [Total Addressable Market], and likely conservative FY2021 estimates reinforce our view that ADBE should be a core investment holding.” The rest of the Street is also firmly bullish on the stock, with a Strong Buy analyst consensus based on 8 unanimous Buys. Shares have advanced about 31% over the past year and the average price target of $575 indicates upside potential of 26% over the coming months. Bottom line The demand for cloud-based applications is expected to continue to benefit Adobe and Autodesk in the years ahead. While the Street’s Strong Buy analyst consensus for both companies indicates confidence in their long-term potential, currently the possible upside in Adobe stock makes it a better pick. To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment

Amid the coronavirus pandemic, corporate spending priorities have shifted. When software growth stocks report December quarter earnings, 2021 guidance will be key.

Nelson Roberts Investment Advisors, an employee-owned investment advisory firm that provides asset and wealth management published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. The Firm’s focal point and target is to maintain a long term value and growth of assets over time. You can view the fund’s top 10 […]

In the latest trading session, Adobe Systems (ADBE) closed at $458.08, marking a -1.12% move from the previous day.

Alteryx (AYX) partners Snowflake to integrate its analytics automation and data science capabilities with Snowflake's platform.

Adobe successfully pivoted to cloud-based subscriptions. But new acquisitions raise risks. Is ADBE stock a buy?

Now's when many investors lament the top stocks they didn't own. But you have a second shot at some if analysts are right.

The average daily online revenue was $3.2 billion, up 32% from $2.3 billion last year. Total online sales were $188.2 billion, up 32.2%. “With online shopping already heightened coming into the season due to early discounting and improved mobile shopping experiences, we saw revenue levels increase over Thanksgiving week and give way for record-breaking Black Friday and Cyber Monday at $9B and $10.8B respectively,” said Taylor Schreiner, director of Adobe Digital Insights, in a statement .

Digital transformation should continue to drive many of the gains in the technology sector in the new year.

Adobe (ADBE) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Timeless lesson: Regular people can beat the market by investing in businesses they understand better than Wall Street. Written in 1989, the examples in One Up on Wall Street are outdated, but their sentiment is still applicable today. Lynch simplifies the stock market and reminds investors that stocks are companies with real businesses.

The Zacks Analyst Blog Highlights: Adobe, Uber, Deere & Co, Applied Materials, TJX Companies and Dominion Energy

Top Research Reports for Adobe, Uber & Deere

3 Software Stocks to Buy in a Challenging Industry

In 2020, the technology sector was hot, but many cloud computing equities were simply scintillating, a theme that's still in its early innings.What Happened: For investors that like the idea of cloud exposure, but don't like the idea of stock picking in this segment, there are three dedicated exchange traded funds to consider, all of which delivered impressive 2020 performances.To put those showings into context, the worst-performing cloud ETF gained almost 58%, but in a case of differences between ETFs that appear similar proving meaningful, the WisdomTree Cloud Computing Fund (NASDAQ: WCLCD) gained almost 110% last year. That's good for one of the best returns among all non-leveraged ETFs, thematic or otherwise.Why It's Important: WCLD, which debuted in September 2019, tracks the BVP Nasdaq Emerging Cloud Index. The "BVP" stands for Bessemer Venture Partners, a firm with expertise in cloud investing and public cloud benchmarks."Technology is increasingly driving global GDP and software is the fastest growing segment of technology," write Byron Deeter and Mary D'Onofrio of Bessemer."Within software, the growth of cloud is moving at an impressive clip; it's becoming abundantly clear that cloud computing will become a majority of enterprise software by 2025, and the vast majority of all software by 2030. Simply put, cloud computing is increasingly consuming software, hardware, and services and is therefore the most exciting mega-trend in technology, making it one of the most compelling themes impacting global GDP over the coming years."As WisdomTree points out, Bessemer coined a new investing acronym, one that could rival or supplant FAANG: MT SAAS.That's for Microsoft (NASDAQ: MSFT), Twilio (NYSE: TWLO), Salesforce (NYSE: CRM), Amazon (NASDAQ: AMZN), Adobe (NASDAQ: ADBE) and Shopify (NYSE: SHOP).In alphabetical order, Adobe, the Dow component Salesforce, Shopify and Twilio are members of the WCLD roster.What's Next: The inclusion of those names in WCLD is relevant for myriad reasons, including revenue growth. To enter WCLD's index, new components must have revenue growth of 15% in each of the prior two fiscal years and to stay in the benchmark, a company must have a minimum of 7% top line growth in one of the past two years.And no, lacking Amazon and Microsoft exposure doesn't harm WCLD's long-term prospects."MT SAAS is a mix of application (CRM, ADBE, SHOP) and infrastructure (MSFT, TWLO, AMZN) companies, incumbent giants (MSFT, AMZN) and hypergrowth challengers (CRM, ADBE, SHOP, TWLO), all sharing the same characteristics of cloud delivery models, cloud business models, high growth, and compelling long-term margin potential," notes Bessemer.See more from Benzinga * Click here for options trades from Benzinga * Betting On BETZ As New Year Rapidly Brings Sports Betting Consolidation Rumors * Bitcoin Surge Renews Enthusiasm For Blockchain ETF(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Want to crystal ball the best mutual funds 2021? Start with the 2020 winners. That's got to include Fidelity Trend Fund run by Shilpa Marda Mehra.

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...