Autodesk (ADSK) closed the most recent trading day at $252.20, moving -1.08% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.52%. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 0.21%.
The stock of design software company has risen by 20.63% in the past month, leading the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of Autodesk in its upcoming release. On that day, Autodesk is projected to report earnings of $3.07 per share, which would represent year-over-year growth of 14.98%. At the same time, our most recent consensus estimate is projecting a revenue of $2.13 billion, reflecting a 14.96% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.62 per share and a revenue of $8.32 billion, signifying shifts of +21% and +15.48%, respectively, from the last year.
Any recent changes to analyst estimates for Autodesk should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Autodesk holds a Zacks Rank of #3 (Hold).
In terms of valuation, Autodesk is presently being traded at a Forward P/E ratio of 20.2. This signifies a discount in comparison to the average Forward P/E of 20.75 for its industry.
We can additionally observe that ADSK currently boasts a PEG ratio of 1.3. 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 Internet - Software was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).