Autodesk (ADSK) closed the most recent trading day at $303.66, moving +1.28% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the design software company have depreciated by 7.19% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.01%, and the S&P 500's gain of 0.71%.
The investment community will be closely monitoring the performance of Autodesk in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.49, reflecting a 14.75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.8 billion, showing a 14.95% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.92 per share and revenue of $7.06 billion, indicating changes of +17.12% and +15.08%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Autodesk. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Autodesk is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Autodesk is presently trading at a Forward P/E ratio of 30.22. Its industry sports an average Forward P/E of 28.77, so one might conclude that Autodesk is trading at a premium comparatively.
It is also worth noting that ADSK currently has a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ADSK's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Autodesk, Inc. (ADSK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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