Adobe's Record-High Profitability Outshines Digital Media Deceleration

Core Thesis - Adobe Inc. (ADBE) is rated as a buy based on four main pillars: improved profitability over the last decade and the past year, valuation ratios significantly below historical averages, and a focus on GARP, Value, and Growth investment approaches [1] Profitability - Profitability has shown improvement both over the last 10 years and in the last 12 months, indicating a positive trend in financial performance [1] Valuation - Current valuation ratios for Adobe Inc. are considerably lower than historical averages, suggesting potential for price appreciation [1] Investment Approach - The investment strategies employed include GARP (Growth at a Reasonable Price), Value, and Growth, with a close watch on insider buying and stock buybacks [1] Technical Analysis - Technical analysis tools such as Elliott Wave, EMA crossovers, and chart patterns are utilized to inform investment decisions [1]