Autodesk (ADSK) ended the recent trading session at $239.90, demonstrating a -2.15% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.09%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 2.15%.
The design software company's shares have seen an increase of 12.13% over the last month, surpassing the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of Autodesk in its upcoming release. The company is expected to report EPS of $3.07, up 14.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 14.96% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.62 per share and revenue of $8.32 billion, indicating changes of +21% and +15.48%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Autodesk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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, there's been no change in the Zacks Consensus EPS estimate. Autodesk currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Autodesk has a Forward P/E ratio of 19.42 right now. For comparison, its industry has an average Forward P/E of 21.23, which means Autodesk is trading at a discount to the group.
Also, we should mention that ADSK has a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ADSK's industry had an average PEG ratio of 1.25 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Report
This article originally published on Zacks Investment Research (zacks.com).