5 of 9
BACKNEXT
Adobe Systems
(ADBE) P/E: 18.2, EPS Growth: 15%

The king of PDF files may be one of the most dependable tech stocks to own thanks to its wide range of popular products. Adobe is only a few months away from launching the fifth edition of its Creative Suite (CS5), a collection of media design and development software such as Photoshop and Flash.

Though the stock is trading at 19 times calendar 2010 estimates, Ticonderoga Securities analyst Jay Vleeschhouwer says it's a fair value for a market leading software firm. And for the next few years, analysts expect Adobe's earnings to grow 15% on average.

Most agree the release of CS5 will no doubt top CS4's limited success since it was unveiled at the start of the recession, when advertising budgets were crunched. Some say the launch could come close to that of CS3, which is considered to be most successful product introduction in Adobe's 27-year history.

There are also several incentives driving consumers to upgrade to CS5, including Web analytics tools that the company can integrate into the software package after it acquired Omniture for $1.8 billion last year. And despite Apple's refusal to make its mobile devices compatible with Flash, Flash is omnipresent on the Web and will likely continue to be a Web video leader as other mobile operating systems like Google's Android and Microsoft's Windows Mobile enable it.

--Hibah Yousuf

NEXT: Apollo Group

Last updated February 13 2010: 11:57 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.