Adobe (ADBE) Offering Possible 35.5% Return Over the Next 15 Calendar Days

Adobe's most recent trend suggests a bullish bias. One trading opportunity on Adobe is a Bull Put Spread using a strike $297.50 short put and a strike $292.50 long put offers a potential 35.5% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $297.50 by expiration. The full premium credit of $1.31 would be kept by the premium seller. The risk of $3.69 would be incurred if the stock dropped below the $292.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Adobe is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Adobe is bullish.

The RSI indicator is at 70.79 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Adobe

Best Stocks for 2019: Adobe Stock Is Up 30% YTD — And Still Undervalued
Tue, 02 Jul 2019 15:37:54 +0000
Editor's note: This article is a part of InvestorPlace.com's Best Stocks for 2019 contest. John Jagerson and Wade Hansen's pick for the contest is Adobe (NASDAQ:ADBE).Since December 2018, we have been recommending Adobe (NASDAQ:ADBE) as a long position because its fundamentals are undervalued. ADBE's market position is dominant in its media products and the company has been steadily growing by adapting its Creative and document management solutions to mobile. We feel that these factors will protect the company from the emerging economic headwinds both in the U.S. and outside.InvestorPlace – Stock Market News, Stock Advice & Trading TipsFrom a technical perspective, ADBE has been able to outperform its benchmark indexes and most of its peers despite a choppy year for stocks so far. Now that we have another two quarters of data since we began recommending ADBE stock, it's time to revisit our analysis and see if we can still make the same judgement. Valuing ADBEWe believe that ADBE's ability to grow its profit margins has positioned it well in each of its three main segments: Digital Media, Digital Expertise and Publishing. The media segment includes their Creative products like Photoshop and their document services, which accounts for more than 70% of their revenue.The most recent quarterly report on June 18 showed Creative revenues were up by 22% on a year-over-year basis. The emphasis on services and subscriptions has increased ADBE's gross margin to 85% and net margins are at 23% over the same period. The company did suffer a little over the last two quarters due to adverse currency conversion rates, but to put it in perspective, from a margin standpoint, ADBE is outperforming Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Amazon (NASDAQ:AMZN); it's also just behind the most recent report from Microsoft (NASDAQ:MSFT). * 7 Restaurant Stocks to Put on Your Plate Besides the favorable comparison between ADBE and their peers, we believe the company's growth has not been fully priced into the stock. As you can see in the following chart, revenue and EPS have been rising with the stock's price, but its earnings multiple remains near historical lows. If we were to adjust the EPS line to use constant dollars, the trend of the P/E ratio and EPS would be even more impressive. Click to EnlargeThe point behind a value-price comparison like this is to determine if investors are paying more, or less, for each dollar of earnings than they have in the past. Because growth is still strong, paying less for the stock now indicates the likely probability that the shares are still undervalued. Technical PositionLike the stock averages themselves, ADBE's share price drew down in April and May as traders worried about the impact of slowing economic growth and the trade war. Total revenue from the Europe Middle East Africa (EMEA) region was 27% in the most recent quarter and 15% was from Asia. Outside the US, economic performance and stock markets haven't recovered from the bear market of late-2018 to the extent the U.S. has, and we feel this has also dragged on ADBE's share price.However, ADBE's current technical breakout following their earnings report from an inverted "head-and-shoulders" pattern looks to be a strong bullish momentum signal. This stock tends to have reliable technical patterns which we have been commenting on in our previous recommendation updates including the double bottom in February, bullish diamond in April, and the double-bottom retest at the beginning of June. Click to EnlargeIn the short term, a Fibonacci-based target of the inverted head-and-shoulders pattern would indicate an upside target in the $313 per share range. Historically, patterns like this can play out very quickly, but 60-days is closer to the long-term average. A Few Issues to Watch for AdobeAs previously mentioned, a quarter of Adobe's sales come from Europe. Adobe may see its revenues softening, especially in document services if the European economy continues to weaken and the Brexit outlook gets worse due to new conservative leadership in the U.K. Adobe's continual investment in developing end-to-end document signing and processing puts it at the forefront of the global supply chain. However, recent trade wars could stall that income growth in the short term.The company has placed an emphasis on lower-end media solutions and document management that are focused on mobile users which should help insulate the company from some economic issues because these products are broadening their customer base. We believe the long-term impact of this focus will be similar to what happened when the company shifted to cloud-based services and will increase margin growth. * 7 Stocks on Sale the Insiders Are Buying As noted in ADBE's recent earnings release, a rising dollar was a negative for earnings. The Fed is hinting at a strong possibility of interest rate cuts in the short term, which could help weaken the dollar and improve performance. However, even with the Fed's potential cuts in July and December, the battle for a cheaper currency may be tough to win against the European Central Bank (ECB) which has promised to be ready with easing of its own if market conditions worsen in Europe. This is a systemic issue that will affect most large companies but is something to keep your eye on this summer.InvestorPlace advisors John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next trade and get 1 free month today by clicking here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks The post Best Stocks for 2019: Adobe Stock Is Up 30% YTD — And Still Undervalued appeared first on InvestorPlace.

Best Stocks for 2019: Teladoc Stock Is Here to Stay
Tue, 02 Jul 2019 14:32:47 +0000
Editor's note: This column is part of our Best Stocks for 2019 contest. Jason Moser's pick for the contest is Teladoc Health (NYSE:TDOC).Teladoc looked like it was going to end the quarter in fourth or even fifth place. But after a rally that started last Wednesday, TDOC stock slid past Adobe (NASDAQ:ADBE), Amazon (NASDAQ:AMZN) and Charlotte's Web (OTCMKTS:CWBHF) for a second-place finish.InvestorPlace – Stock Market News, Stock Advice & Trading TipsSo how does TDOC look going forward? TDOC's First Quarter EarningsTeladoc's first quarter was a good one. Revenue of $128.6 million marked growth of 43% (23% organic) and total U.S. paid members are now at 26.7 million along with 10.2 million visit fee-only users. Total visits of 1,063,000 represented 29% organic growth.It's also worth noting that this represented the first quarter where the business crossed 1 million doctor's visits, and that was actually in spite of a weaker flu season. International visits grew from basically nothing a year ago to 282,000 this quarter.Gross margin was 65.3% versus 70% a year ago and as we've seen in previous quarters this investment in behavioral along with a more comprehensive offering. TDOC's balance sheet remains in good shape considering the deals the company has made recently with $479 million in cash and equivalents and $450 million debt. It's also worth noting that debt is in convertible notes that don't even come due until 2022 and 2025. Looking Ahead for TDOCThe business is still unprofitable but what else is new? Profitability will come in time and management reiterates that the company will be cash flow positive for the first time in 2019 so we'll hold them to that target. * 7 Restaurant Stocks to Put on Your Plate The CVS and Aetna relationships have never been stronger and we should expect some additional news regarding Teladoc and Aetna at some point in the near future as well.CEO Jason Gorevic likes this business because there are so many levers for growth. I tend to agree; healthcare is a phenomenally large global market opportunity.One final note, the CFO search is over as Mala Murthy has joined the Teladoc team. A seasoned vet, Murthy comes to the company from American Express so it's encouraging to see the team in a good place going forward.As of this writing, Jason Moser, a senior analyst with The Motley Fool, held shares of TDOC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks The post Best Stocks for 2019: Teladoc Stock Is Here to Stay appeared first on InvestorPlace.

Dow Jones Futures Signal Stock Market Rally Pause; Microsoft, Adobe, ServiceNow In Buy Zones
Tue, 02 Jul 2019 11:41:05 +0000
Stock futures: Chips and China names led Monday's stock market rally. But Microsoft, Adobe, ServiceNow are among five top software stocks rising and reclaiming buy points.

Adobe (ADBE): Buy or Die?
Mon, 01 Jul 2019 22:45:10 +0000
Adobe has driven north of 20% revenue growth for every quarter year-over-year since 2015. ADBE has surge more than 313% in 5 years, and potential investors keep missing the boat. The stock is on track for their 8th consecutive year of double-digit returns.

IBD 50 Stocks To Watch: This Stock Broke Out And Is In Buy Range
Mon, 01 Jul 2019 17:24:52 +0000
Adobe's earnings grew 10% in each of the past two fiscal quarters. But that represents a decline from 40% or greater growth in the previous nine quarters.

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.