Autodesk (ADSK) closed the latest trading day at $272.89, indicating a +0.52% change from the previous session's end. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.
Prior to today's trading, shares of the design software company had gained 3.69% over the past month. This has outpaced the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84% in that time.
Market participants will be closely following the financial results of Autodesk in its upcoming release. It is anticipated that the company will report an EPS of $2.14, marking a 14.44% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.61 billion, indicating a 13.39% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.48 per share and a revenue of $6.92 billion, representing changes of +11.92% and +12.84%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Autodesk. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% lower. Autodesk is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Autodesk is presently being traded at a Forward P/E ratio of 28.63. For comparison, its industry has an average Forward P/E of 25.98, which means Autodesk is trading at a premium to the group.
Also, we should mention that ADSK has a PEG ratio of 1.85. 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. The Internet - Software industry had an average PEG ratio of 2.2 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 43% 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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