In the latest trading session, Autodesk (ADSK) closed at $281.19, marking a -0.18% move from the previous day. This change was narrower than the S&P 500’s 0.26% loss on the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today’s trading, shares of the design software company had gained 9.33% over the past month. This has outpaced the Computer and Technology sector’s gain of 2.19% and the S&P 500’s gain of 4.82% in that time.
Wall Street will be looking for positivity from Autodesk as it approaches its next earnings report date. In that report, analysts expect Autodesk to post earnings of $1.43 per share. This would mark year-over-year growth of 21.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 14.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $4.37 billion. These totals would mark changes of +23.7% and +15.23%, respectively, from last year.
Any recent changes to analyst estimates for Autodesk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s 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.
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 remained stagnant. Autodesk currently has a Zacks Rank of #3 (Hold).
Investors should also note Autodesk’s current valuation metrics, including its Forward P/E ratio of 56.27. This valuation marks a premium compared to its industry’s average Forward P/E of 37.15.
Investors should also note that ADSK has a PEG ratio of 1.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Computer – Software was holding an average PEG ratio of 3.09 at yesterday’s closing price.
The Computer – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.
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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