3 Things to Love About Adobe, Even Though Its Stock Is Down 40%

Adobe's (NASDAQ: ADBE) stock is down 40% this year, but that doesn't mean the business is headed for trouble. A common mistake investors make is associating the performance of a stock with the performance of the underlying business. In many cases, a stock can go down even though the business is doing just fine. Adobe's stock was probably overvalued at the start of the year, but now, it may arguably be a steal of a deal. Here are three charts that highlight why I think this may be one of the best stocks to buy heading into 2023.

One of the most important things for investors to consider are a company's margins. From gross margin to operating margin, it's crucial to know how much of every dollar of revenue is making its way to gross profit and operating profit. In Adobe's case, it's a lot: