In the latest trading session, Autodesk (ADSK) closed at $297.08, marking a -4.5% move from the previous day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.55%.
The stock of design software company has fallen by 2.07% in the past month, lagging the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 3.83%.
Analysts and investors alike will be keeping a close eye on the performance of Autodesk in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.49, marking a 14.75% rise compared to the same quarter of the previous 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.92 per share and revenue of $7.06 billion, which would represent changes of +17.12% and +15.08%, respectively, from the prior year.
Any recent changes to analyst estimates for Autodesk should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. Autodesk currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Autodesk is at present trading with a Forward P/E ratio of 31.36. This expresses a premium compared to the average Forward P/E of 30.12 of its industry.
Meanwhile, ADSK's PEG ratio is currently 1.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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