ADBE Stock Analysis: Buy, Sell, or Hold?

ADBE - Adobe Inc.

SERVICES-PREPACKAGED SOFTWARE
$293.25
1.60 (0.55%) ▲
HOLD
MODERATE Confidence
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Last Updated: January 30, 2026
Earnings: Mar 11, 2026

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: ADBE shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$527.17
Based on 8.2% avg growth
INTRINSIC VALUE TODAY
$327.33
10.4% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 13.5x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: ADBE is currently trading at $293.25, which is considered oversold relative to its 30-day fair value range of $298.37 to $346.04. From a valuation perspective, the stock is trading at a discount (Forward PE: 11.1) compared to its historical average (13.5). Remarkably, the market is currently pricing in an annual earnings decline of 6.3% over the next few years. This pessimistic expectation contrasts with the company's recent 17.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, ADBE is in a strong downtrend. The price is currently testing key support at $284.60. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: ADBE has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $420.29 (+44.1%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position OVERSOLD
Fair Price Range $298.37 - $346.04
Company Quality Score 56/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 57.1%

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All Signals

  • BULLISH: Price oversold vs 30-day range
  • BEARISH: Weak technical setup (25/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 44.1% below Wall St target ($420.29)

Fair Price Analysis

30-Day Fair Range $298.37 - $346.04
Current vs Fair Value OVERSOLD

Support & Resistance Levels

Support Level $284.60
Resistance Level $306.30
Current Trend Strong Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 11.06
Wall Street Target $420.29 (+44.1%)
Revenue Growth (YoY) 10.5%
Earnings Growth (YoY) 17.2%
Profit Margin 30.0%
Valuation Discount vs History -6.3% cheaper
PE vs Historical 11.1 vs 13.5 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -6.3% (market-implied from PE analysis)
1-Year Target $273.28 (-6%)
2-Year Target $256.06 (-12%)
3-Year Target $239.93 (-18%)
3-Yr Target (if PE normalizes) (PE: 11→14) $292.99 (+1%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 12.4%) $836.27 (+187%)
Base: (SPY PE: 11.1, Growth: 12.4%) $414.58 (+42%)
Bear: (PE: 9.4, Growth: 12.4%) $352.39 (+21%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (11x PE) as earnings recover.
Trailing PE: 17.82 | Current EPS (TTM): $16.69
Bull Case $517.13 (+77%)
Analyst growth 58.1%, PE expands to 19.6
Base Case $470.12 (+61%)
Market implied 58.1%, PE stable at 17.8
Bear Case $202.25 (-31%)
Severe decline -20.0%, PE contracts to 15.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 11.1 to 13.5
Stabilization Target: $356.15 (+22.1%)
PE Expansion Potential: +22.1%
Last updated: January 30, 2026 4:03 PM ET
Data refreshes hourly during market hours. Next update: 5:03 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
3
Buys
7
Sells
Net
INSIDERS SELLING
Recent Transactions
Marjorie Taylor Greene BUY 2025-10-15
Ro Khanna SELL 2025-09-29
Markwayne Mullin SELL 2025-09-24

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Advanced ADBE Option Strategies

Professional options setups generated by AI based on today's ADBE price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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