13 Most Profitable Software Stocks to Buy Now

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3. Adobe Inc. (NASDAQ:ADBE)

Net Income (TTM): $7.13 billion

Number of Hedge Fund holdings: 88

On February 11, Adobe Inc. (NASDAQ:ADBE) reached a new low of $257.64 over the past six months. This level is modestly higher than its 52-week low of 251.10.

Recently, many analysts have revised their outlook on Adobe Inc. (NASDAQ:ADBE). On February 3, TheFly reported that Piper Sandler downgraded the company’s stock to Neutral from Overweight. Again, on January 26, UBS trimmed its price target on the company to $340, down from $375, and reiterated a Neutral rating. Despite the cut, the price target implies approximately 31% upside.

Previously, on January 12, Goldman Sachs downgraded Adobe Inc. (NASDAQ:ADBE) to Sell from Buy and set a price target of $290. According to the investment bank, the company’s NTM revenue growth of 10% and EPS growth of 10% are lower than those of its competitors by 1% and 8%, respectively. The bank believes EPS growth could be under greater strain due to ongoing investments in AI initiatives.

Adobe Inc. (NASDAQ:ADBE) is a California-based technology company operating through Digital Media, Digital Experience, and Publishing and Advertising segments.

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