In the latest trading session, Autodesk (ADSK) closed at $303.11, marking a -1.63% move from the previous day. This change lagged the S&P 500's 0.37% loss on the day. On the other hand, the Dow registered a loss of 0.74%, and the technology-centric Nasdaq decreased by 0.03%.
The stock of design software company has fallen by 0.71% in the past month, lagging the Computer and Technology sector's gain of 4.58% and the S&P 500's gain of 2.68%.
Market participants will be closely following the financial results of Autodesk in its upcoming release. It is anticipated that the company will report an EPS of $2.44, marking a 13.49% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.73 billion, showing a 14.65% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.64 per share and a revenue of $6.97 billion, representing changes of +13.81% and +13.67%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Autodesk. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Currently, Autodesk is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Autodesk currently has a Forward P/E ratio of 31.97. This represents a premium compared to its industry average Forward P/E of 28.48.
One should further note that ADSK currently holds a PEG ratio of 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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