Are Investors Getting The Adobe Story Wrong? Here's Why It's This Investor's Favorite Stock Right Now

Adobe Inc ADBE shares have fallen significantly since the start of the year and the decline is only getting worse as the stock continues to trade lower Wednesday following weak guidance. 

What Happened: Adobe said it expects fiscal second-quarter revenue to be about $4.34 billion, versus the $4.41 billion estimate. The company expects second-quarter earnings to be around $3.30 per share, versus the estimate of $3.35 per share.

Several analysts lowered price targets on the stock following Adobe's quarterly results.

Related Link: Adobe Shares Tick Lower Post Q1 Results

Why It Matters: The recent decline is a buying opportunity, according to Boston Private's Shannon Saccocia.

"We have a significant overweight in our portfolio in this stock, but if we did not, we would be adding to it here," Saccocia said Wednesday on CNBC's "Fast Money Halftime Report."

She acknowledged that the guidance was disappointing, but she thinks the stock is reacting to execution and misplaced investor sentiment.

"There is the perception that a lot of this was pulled forward as companies accelerated their footprints in digital media on the back of the pandemic. However, if you think about the installed base that Adobe has, the fact that they're growing [earnings] 15%, the fact that they're trading at 27 times, that's a pretty attractive PEG ratio versus the S&P 500," Saccocia said.

She doesn't expect Adobe's growth to abate just because the world is reopening. Saccocia told CNBC that Adobe is her favorite stock to own right now. 

ADBE Price Action: Adobe has traded between $407.94 and $699.54 over a 52-week period.

The stock was down 10.13% at $419.18 at press time.

Photo: courtesy of Adobe.