In the latest close session, Autodesk (ADSK) was up +1.56% at $293.17. This move outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.65%.
The design software company's shares have seen a decrease of 4.22% over the last month, not keeping up with the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Autodesk in its forthcoming earnings report. The company is expected to report EPS of $2.63, up 14.85% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.91 billion, indicating a 16.52% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.21 per share and a revenue of $7.16 billion, signifying shifts of +20.54% and +16.76%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Autodesk. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 shifted 0.06% downward. Right now, Autodesk possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Autodesk is presently trading at a Forward P/E ratio of 28.27. This valuation marks a premium compared to its industry average Forward P/E of 24.53.
We can also see that ADSK currently has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.52 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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