{"id":43484,"date":"2025-09-15T11:34:59","date_gmt":"2025-09-15T11:34:59","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/15\/the-bullish-case-for-the-cheap-adobe-stock-price-2\/"},"modified":"2025-09-15T11:34:59","modified_gmt":"2025-09-15T11:34:59","slug":"the-bullish-case-for-the-cheap-adobe-stock-price-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/15\/the-bullish-case-for-the-cheap-adobe-stock-price-2\/","title":{"rendered":"The bullish case for the cheap Adobe stock price"},"content":{"rendered":"
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Adobe stock price has remained in a tight range in the past few days as investors reacted to the recent earnings. ADBE was trading at $350, inside a range it has been stuck at in the past few days. This price is about 40% below the highest point in 2024. <\/p>\n

Adobe published strong financial results <\/h2>\n

Adobe, one of the biggest players in the software industry, published strong financial results<\/a> last week  <\/p>\n

Its revenue rose by 11% in the third quarter to $5.99 billion, a record level that was in line with what most analysts were expecting.<\/p>\n

Its digital media segment revenue rose by 12% to $4.46 billion, while its digital experience jumped by 9% to $1.48 billion.<\/p>\n

Most notably, the company\u2019s outlook was also much better than what analysts were expecting. The company expects that its revenue will be between $6.075 billion to $6.125 billion, a move that will bring its annual revenue between $23.65 billion and $23.70 billion.<\/p>\n

Adobe\u2019s digital media segment will make between $4.53 billion and $4.56 billion, while its digital experience segment will be between $1.45 billion and $1.515 billion.<\/p>\n

Wall Street analysts expect the company’s growth will be steady this quarter. The average revenue estimate among analysts is $6.12 billion, up by 9% from the same period last year.<\/p>\n

ADBE is supported by its attractive valuation <\/h2>\n

One of the main catalysts for the ADBE stock price is its attractive valuation<\/a>. Data shows that the forward price-to-earnings ratio is 21, much lower than the technology sector of 31 and the S&P 500 Index\u2019s 22.<\/p>\n

The forward P\/E on a non-GAAP basis is 16.85, also much lower than the sector median of 24. These valuation multiples are much lower than other popular companies like Salesforce, Microsoft, and ServiceNow.<\/p>\n

Other valuation multiples are also not doing well. For example, the forward EV to EBITDA is 12, also much lower than the sector median of almost 15.<\/p>\n

The same is true is with its rule-of-40 multiple, which looks at a company’s revenue growth and margins. Adobe’s forward revenue growth is about 10% compared to its net income margin of 30%, giving it a multiple of 40%. The multiple is much higher when considering its free cash flow margin of 36%.<\/p>\n

Adobe stock price technical analysis<\/h2>\n
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ADBE stock chart | Source: TradingView<\/p>\n

The daily timeframe chart shows that the ADBE stock price has strong bullish technicals. It has formed a double-bottom pattern at $332, and a neckline at $422. A double-bottom is one of the most common bullish reversal patterns in technical analysis.<\/p>\n

The Relative Strength Index and the MACD indicators have also formed a bullish divergence chart pattern, which happens when they are moving upwards during a bear market.<\/p>\n

Therefore, the stock will likely bounce back as bulls target the neckline at $430, which is about 20% above the current level  <\/p>\n

The risk, however, is that the stock could be forming an inverse cup-and-handle pattern, which is a continuation pattern. If this happens, the stock could have more downside, potentially to below $300.<\/p>\n

The post The bullish case for the cheap Adobe stock price<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Adobe stock price has remained in a tight range in the past few days as investors reacted to the recent earnings. ADBE was trading at $350, inside a range it has been stuck at in the past few days. This price is about 40% below the highest point in 2024.  Adobe published strong financial results  <\/p>\n","protected":false},"author":1,"featured_media":43485,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-43484","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=43484"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/43485"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=43484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=43484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=43484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}