Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Group 1: Market Performance - A-shares continued to decline, with the Shanghai Composite Index closing down 0.07% at 3359.9 points, the Shenzhen Component down 0.47%, and the ChiNext Index down 0.83%[1] - The Hong Kong market saw the Hang Seng Index rise by 1.26% to 23530.48 points, with the Hang Seng Tech Index up 0.88% and the Hang Seng China Enterprises Index up 1.38%[1] - The total market turnover in Hong Kong was 2224.23 million HKD[1] Group 2: Economic Indicators and Federal Reserve Actions - Federal Reserve Governor Waller indicated that a rate cut could occur as early as July, suggesting that the current benchmark interest rate is 1.25 to 1.5 percentage points above the neutral level[1] - The U.S. stock market showed mixed results, with the Dow Jones up 0.08%, the S&P 500 down 0.22% at 5967.84 points, and the Nasdaq down 0.51%[1] Group 3: Geopolitical Events - The U.S. military conducted airstrikes on three Iranian nuclear facilities, with President Trump threatening larger attacks if Iran does not reach a peace agreement[1] - Iran's response included a vow to retain all options for retaliation, indicating heightened tensions in the region[1]

Core Viewpoint - In the rapidly growing artificial intelligence (AI) sector, identifying undervalued stocks can be achieved by analyzing price/earnings-to-growth (PEG) ratios rather than just price-to-earnings (P/E) ratios [1][2] Group 1: Investment Opportunities in AI Stocks - Stocks with PEGs under 1 are generally considered undervalued, with notable mentions including Advanced Micro Devices (AMD), Broadcom, Salesforce, Nvidia, and Adobe [2] - Advanced Micro Devices (AMD) has a forward PEG of 0.2, with a 36% revenue increase last quarter to $7.44 billion, driven by a 57% surge in data center segment revenue to $3.7 billion [5][6] - Broadcom has a forward PEG of 0.4, reporting a 25% revenue increase to $14.9 billion, primarily due to a 70% rise in networking revenue, and is expanding into custom AI chips [9][10] - Salesforce has a forward PEG of 0.5, with its Data Cloud annual recurring revenue (ARR) increasing by 120% year over year to over $1 billion, and its Agentforce platform reaching ARR of $100 million shortly after launch [13][14] - Nvidia, a leading AI growth stock, has a forward PEG of 0.7, with data center revenue growing ninefold over two years and maintaining a 92% market share in the GPU space [16][17] - Adobe, with a forward PEG of 0.8, is categorized as growth at a reasonable price (GARP), utilizing AI to enhance its creative software solutions and maintain steady revenue growth [19][20] Group 2: Market Dynamics and Future Growth - AMD's growth is expected to accelerate as the AI market shifts from training to inference, which is anticipated to be a larger market opportunity [7][8] - Broadcom's custom AI chip market opportunity is projected to be between $60 billion to $90 billion by fiscal year 2027, indicating significant growth potential [10] - Salesforce aims to integrate its Data Cloud and Agentforce with existing applications to enhance customer satisfaction and drive adoption [15] - Nvidia's continued demand for its latest chips positions it well for future growth in the AI data center buildout [18] - Adobe's AI initiatives, particularly the Firefly generative AI model, are expected to support its revenue growth moving forward [21]

Key Takeaways ANET, HUBS, TWLO, ADBE, OKTA are five AI laggards that provided negative returns over the past month. Each stock has strong short-term upside targets and favorable earnings growth projections for the year. Analyst price targets show double-digit potential gains, supported by AI innovations and product strategies. The artificial intelligence (AI)-driven astonishing bull run of 2023 and 2024 has suffered major hurdles in 2025. The tariff and trade policies of the Trump administration, the Fed’ ...

Key Takeaways ADBE shares fell 8.6% post-Q2 earnings amid concerns over modest near-term AI revenue growth. Adobe's AI tools like Firefly and GenStudio are gaining traction, topping its $250M ARR goal for FY25. FY25 guidance was raised, with expected revenue of up to $23.6B and EPS between $20.50 and $20.70.Adobe (ADBE) shares have dropped 8.6% since the company reported second-quarter fiscal 2025 results on Thursday (June 12) last week. The drop reflects modest revenue growth prospects in the near term, ...

Anand Chokkavelu, CFA has no position in any of the stocks mentioned. Jose Najarro has no position in any of the stocks mentioned. Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool has a disclosure policy. ...

Core Insights - Adobe and Apple are integrating artificial intelligence (AI) into their core products, with Adobe focusing on creative tools and Apple enhancing its operating systems [2][3] - Global spending on AI technologies is projected to exceed $749 billion by 2028, with enterprises expected to contribute 67% of the $227 billion AI spending in 2025 [3] - Both companies face competition from Microsoft, Amazon, and Alphabet, with Adobe shares down 13.9% year-to-date and Apple shares down 21.8% [4] Adobe's Position - Adobe has expanded its AI offerings with products like Adobe GenStudio and Firefly Services, which facilitate collaboration on marketing campaigns [6] - The Firefly Video Model in Premiere Pro allows for instant generation and extension of video and audio clips, while the Firefly App is gaining traction for AI-powered content creation [7][11] - Adobe's Digital Media Annual Recurring Revenue (ARR) has increased by 12% year-over-year, reaching $18.09 billion [12] - The company is on track to exceed its $250 million ARR target from AI-first products by the end of fiscal 2025 [12] - Adobe's earnings estimates for fiscal 2025 have risen to $20.41 per share, indicating a 10.8% increase over the previous year [16] Apple's Position - Apple is seeing improved iPhone 16 sales in regions where Apple Intelligence features are available, with plans to expand language support for these features [13][14] - New features for Apple Intelligence include Live Translation and enhancements to visual intelligence, expected to be available this fall [14] - The consensus estimate for Apple's fiscal 2025 earnings has decreased to $7.11 per share, suggesting a 5.33% growth over fiscal 2024 [17] Valuation Comparison - Adobe is trading at a lower forward Price/Sales ratio of 6.62X compared to Apple's 7.04X, indicating a more favorable valuation for Adobe [18] - Both companies are considered overvalued, but Adobe's focus on monetization and partnerships with major firms is expected to drive growth [21] - Adobe's revenue guidance has been raised to between $23.5 billion and $23.6 billion, reflecting positive momentum [21] Investment Recommendation - Adobe is rated as a stronger buy with a Zacks Rank 2, while Apple holds a Zacks Rank 3, indicating a hold position [22]

Adobe Systems (ADBE) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ...

Software is ubiquitous and has become the focal point of technological innovation. Apart from running devices and applications, its usage has been extended to managing infrastructure. The Zacks Computer Software industry participants are well-positioned to benefit from the accelerated digital transformation drive across the globe. The shift to cloud and the rise of SaaS (Software-as-a-Service) models offers recurring revenue visibility for vendors and scalability for users.The industry growth is also being ...

Adobe针对生成AI视频和图像推出单独的移动端APP Fireflly。 ...