Like other technology and software stocks, Adobe Systems (NASDAQ: ADBE) had an epic 2020. Shares are up 37% since the start of last year — including the recent pullback in tech stocks that has hit this digital-transformation company along with high-flying names that were overdue for a correction. And with widespread reopening of the economy in sight, Adobe stock has seemingly been cast aside in favor of companies in sectors that didn’t fare so well last year (like travel, energy, and retail).
Make no mistake, Adobe is tech, but it will also benefit a great deal as the global economy slowly normalizes. Here are three reasons this is a top software buy after the recent pullback in tech stocks.
Adobe has been around a long time, but the company’s growth story has been incredibly resilient. It has transformed itself into a leader in cloud software services and has supplemented its core platform with acquisitions, most recently the takeover of marketing management platform Workfront in December 2020.