In the latest close session, Autodesk (ADSK) was down 1.9% at $288.96. The stock trailed the S&P 500, which registered a daily loss of 0.4%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq gained 0.18%.
Prior to today's trading, shares of the design software company had lost 1.59% lagged the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%.
Analysts and investors alike will be keeping a close eye on the performance of Autodesk in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.44, signifying a 13.49% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.73 billion, indicating a 14.65% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.64 per share and a revenue of $6.97 billion, demonstrating changes of +13.81% and +13.67%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Autodesk. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.12% upward. Autodesk is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Autodesk's current valuation metrics, including its Forward P/E ratio of 30.56. This expresses a premium compared to the average Forward P/E of 28.28 of its industry.
One should further note that ADSK currently holds a PEG ratio of 1.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.18.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Autodesk, Inc. (ADSK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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