In the latest close session, Autodesk (ADSK) was up +1.31% at $247.54. The stock exceeded the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow saw a downswing of 1.13%, while the tech-heavy Nasdaq depreciated by 0.19%.
The design software company's stock has climbed by 2.63% in the past month, falling short of the Computer and Technology sector's gain of 18.71% and the S&P 500's gain of 10.02%.
Market participants will be closely following the financial results of Autodesk in its upcoming release. In that report, analysts expect Autodesk to post earnings of $2.84 per share. This would mark year-over-year growth of 24.02%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.89 billion, indicating a 16.02% 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 $12.38 per share and revenue of $8.15 billion. These totals would mark changes of +18.7% and +13.04%, respectively, from 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Autodesk is currently a Zacks Rank #3 (Hold).
In terms of valuation, Autodesk is presently being traded at a Forward P/E ratio of 19.74. Its industry sports an average Forward P/E of 19.38, so one might conclude that Autodesk is trading at a premium comparatively.
Investors should also note that ADSK has a PEG ratio of 1.22 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.09 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 29% of over 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 Report
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