Autodesk (ADSK) closed at $162.90 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.48%.
Prior to today's trading, shares of the design software company had gained 1.62% over the past month. This has lagged the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 3.62% in that time.
ADSK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.61, up 221.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $787.43 million, up 28.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $3.28 billion. These totals would mark changes of +179.21% and +27.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ADSK. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% lower. ADSK is currently a Zacks Rank #4 (Sell).
Digging into valuation, ADSK currently has a Forward P/E ratio of 58.6. For comparison, its industry has an average Forward P/E of 29.58, which means ADSK is trading at a premium to the group.
Also, we should mention that ADSK has a PEG ratio of 1.54. 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 Computer - Software was holding an average PEG ratio of 2.14 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 102, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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