Stock Prediction Algorithm: Adidas and Adobe Surge Post Earnings

Stock Prediction Algorithm

The I Know First Algorithm predicted bullish forecasts for Adidas and Adobe, prior to their Q4 2016, and Q1 2017 results, respectively.

Background

Adidas AG (Adidas Group) manufactures sports shoes and sports equipment. The Company produces products that include footwear, sports apparel, and golf clubs and balls. adidas sells its products worldwide. The firm is considered NIKE’s largest rival in the athletic footwear industry.

Stock Prediction Algorithm

Adobe Systems Incorporated is one of the largest software companies in the world. They offer products and services that are used by creative professionals, markets, and consumers. They use the product for managing, delivering and measuring compelling content and experiences across personal computers, devices and social media.

Adidas 

Following the companies Q4 2016 results, released on the 8th of March, Adidas experienced a huge jump in share prices. Closing at $159.80 on the 7th. The share moved to $174.85 the following day, increasing by $15.05 post their release of their earnings. The earnings were better than expected for the company, hence the surge in price, by almost 10%.

Adidas expects 2017 to be another exceptional year for the company, with gross margin set to increase to 49.1% (currently 46.71%). As well as gross margin increasing, revenue increased dramatically from 16.9 billion in 2015, to 19.29 billion this past year.

The company looks to close in on its biggest competitor in the US market, Nike. They look set to target North America, where Nike is dominating this target market.

Source: Capital Cube

Adobe

Following the companies Q1 2017 results, released on the 16th of March, Adobe experienced a decent jump in share prices. Closing at $122.37 on the 16th. The share moved to $129.05 the following day, increasing by $6.68 post their release of their earnings. The earnings were better than expected for the company, hence the surge in price, by almost 4%.

The results were better than expected, beating analysts expectations. Adobe is benefiting from the shift of marketing ad dollars online to video, social, search and display. The company believes that video is where consumers are willing to spend their money, and the acquisition of TubeMogul is helping Adobe capture marketers.

For the first quarter of 2017, the company reported quarterly earnings per share of 94 cents (non-GAAP) and revenue of $1.68b. This beat analysts earnings per share of 87 cents on revenue of $1.65b.
Source: CNBC
 Conclusion 
Both Adidas and Adobe look set for promising years, following their quarterly earnings. Adidas looks set to target a new audience, and push to close to the gap on profit between their biggest rival, Nike. While Adobe looks to further capture marketers and use their product to leverage all forms of video.

This bullish forecast on ADBE and ADS.DE was sent to current I Know First subscribers on March 7, 2017 and March 16, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.