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Autodesk (ADSK) Stock Sinks As Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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Autodesk (ADSK) closed at $300.21 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.38%.

Coming into today, shares of the design software company had lost 4.01% in the past month. In that same time, the Computer and Technology sector gained 8.01%, while the S&P 500 gained 2.33%.

ADSK will be looking to display strength as it nears its next earnings release, which is expected to be February 25, 2021. The company is expected to report EPS of $1.07, up 16.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, up 12.16% from the year-ago period.

Investors might also notice recent changes to analyst estimates for ADSK. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ADSK is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ADSK currently has a Forward P/E ratio of 59.34. This valuation marks a premium compared to its industry's average Forward P/E of 39.93.

Meanwhile, ADSK's PEG ratio is currently 1.7. 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 Computer - Software was holding an average PEG ratio of 3.01 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 207, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow ADSK in the coming trading sessions, be sure to utilize Zacks.com.


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