10 Best Jim Cramer Stocks to Buy According to Analysts

6. Adobe Inc. (NASDAQ:ADBE)

Average Price Target Upside: 13.86%

Number of Hedge Fund Holders: 123

Cramer commented on Adobe Inc. (NASDAQ:ADBE) before it reports its Q4 and FY2024 earnings on December 11, saying:

“As I mentioned earlier, the enterprise software stocks have been roaring, reacting very positively to pretty much everything these days. So maybe we should start thinking about buying the stock of Adobe, which has some of the very best software to help businesses with marketing and web design. I like this company very much, but it’s been stuck in enterprise software purgatory. Not anymore. Maybe it has a real run by just delivering good numbers.”

Adobe (NASDAQ:ADBE) is a prominent software company known for offering a wide range of products and services, particularly in digital media creation and document management. Recently, the company has made significant strides in integrating AI into its products.

During its third-quarter earnings call, management highlighted how the integration of AI, particularly in generative features, into its core products has led to higher customer retention, as users tend to stick with the tools that incorporate these advanced capabilities. The company projects its total revenue for the fourth quarter to fall between $5.50 billion and $5.55 billion. It expects non-GAAP earnings per share to be in the range of $4.63 to $4.68.

Furthermore, Adobe (NASDAQ:ADBE) expects to see a net new annual recurring revenue (ARR) of approximately $550 million from its Digital Media segment. This segment’s revenue is forecasted to be between $4.09 billion and $4.12 billion. In addition, the company expects its Digital Experience segment to generate revenue between $1.36 billion and $1.38 billion, with subscription revenue from this segment ranging from $1.23 billion to $1.25 billion.