In the latest close session, Autodesk (ADSK) was down 1.56% at $268.09. The stock's performance was behind the S&P 500's daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.
Prior to today's trading, shares of the design software company had lost 9.59% lagged the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.
The upcoming earnings release of Autodesk will be of great interest to investors. The company is forecasted to report an EPS of $2.63, showcasing a 14.85% upward movement from the corresponding quarter of the prior year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.21 per share and revenue of $7.16 billion. These totals would mark changes of +20.54% and +16.76%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Autodesk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Autodesk is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Autodesk is holding a Forward P/E ratio of 26.67. Its industry sports an average Forward P/E of 24.04, 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 1.57. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.42.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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