Why Adobe Will Be a Top Growth Stock for Years
A good growth stock can be very valuable for an investor's portfolio, as the returns can be significant, especially when a company is able to consistently grow over the years. Adobe (NASDAQ: ADBE) is a great example of such a company, because it has been able to stay relevant and popular for many years. It's coming off an impressive quarter in which it saw sales rise by 24% year over year and net income rise by 19%. Those are some pretty strong numbers for Adobe, and that's just one reason why it's one of the best growth stocks out there. Here are the others.
At more than 50 times earnings, Adobe is by no means a cheap stock today. But a big reason investors are willing to pay such a premium for it is that it has great potential over the long term.
For fiscal 2020, the company is projecting that its earnings per share (EPS), per generally accepted accounting principles (GAAP), will reach approximately $7.40. By comparison, the company's EPS over the trailing 12 months was about $5.66.
Source Fool.com
