In the latest trading session, Autodesk (ADSK) closed at $255.57, marking a +1.07% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.56%.
Prior to today's trading, shares of the design software company had lost 11.81% lagged the Computer and Technology sector's gain of 0.44% and the S&P 500's gain of 0.74%.
The upcoming earnings release of Autodesk will be of great interest to investors. On that day, Autodesk is projected to report earnings of $2.63 per share, which would represent year-over-year growth of 14.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.91 billion, up 16.52% from the year-ago period.
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 0%, respectively, from last year.
Any recent changes to analyst estimates for Autodesk should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Autodesk is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Autodesk is currently being traded at a Forward P/E ratio of 24.77. This expresses a premium compared to the average Forward P/E of 22.53 of its industry.
It is also worth noting that ADSK currently has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADSK's industry had an average PEG ratio of 1.29 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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