For those unaware, Adobe Systems (NASDAQ:ADBE) managed to give its shareholders a value increase of 450% over the past five years.
Adobe stock was nothing short of desirable within that time frame.
But think about it, that increase did take place during Adobe’sscompany’sAdobe’sbe’s years as a smaller company. Nowadays, its market cap stands at roughly $278 billion.
Knowing that it begs the following questions. Can we even expect further growth from Adobe stock at any time in the future? For those investors looking for a profit, is it even worth investing in today?
Contrary to popular belief, Adobe is still growing
First and foremost, let’s think about the company’s current place in the market. If you ask anybody from the creative software industry, they’ll likely say that there are not many alternatives to Adobe’s line of products, especially when it comes to viability.
Their sheer amount of offered features, their levels of quality, their decent pricing… When everything comes together, it all amounts to a competitive advantage unlike any other.
Furthermore, their customers’ interest in sharing their creations online inspires other creators to use the same tools. Think about it as a free demonstration of the full potential of Adobe’s tools, sprawling across the entire internet.
With everything said and done, it stands to reason that Adobe’s presence can’t be easily matched.
Nonetheless, the company’s true strength lies in its ability to release yearly improvements across its entire line of products. Not only does it allow for a better user experience, but it also ensures that its position in the market remains as it is for the foreseeable future.
For investors, they can picture it as such. Even if it might be hard to recreate a growth similar to one of the past five years, Adobe has more than enough potential to gain a significant amount of new customers as time goes by.
Plus, you should know that analysts in the field are indeed expecting Adobe’s earnings to increase at a yearly rate of 17.8%. When you add that the company’s services are dealt with subscriptions, that’s not bad at all.
In short, Adobe does have prospects for decent growth going forward. So yes, it remains a stock worth investing in.