In the latest close session, Autodesk (ADSK) was down 2.2% at $303.50. This move was narrower than the S&P 500's daily loss of 2.71%. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.
The design software company's stock has dropped by 4.38% in the past month, falling short of the Computer and Technology sector's gain of 6.22% and the S&P 500's gain of 3.5%.
The investment community will be closely monitoring the performance of Autodesk in its forthcoming earnings report. In that report, analysts expect Autodesk to post earnings of $2.49 per share. This would mark year-over-year growth of 14.75%. At the same time, our most recent consensus estimate is projecting a revenue of $1.8 billion, reflecting a 14.95% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.92 per share and a revenue of $7.06 billion, demonstrating changes of +17.12% and +15.08%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Autodesk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Autodesk holds a Zacks Rank of #3 (Hold).
Digging into valuation, Autodesk currently has a Forward P/E ratio of 31.28. This expresses a premium compared to the average Forward P/E of 30.41 of its industry.
One should further note that ADSK currently holds a PEG ratio of 1.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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