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

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In the latest trading session, Autodesk (ADSK - Free Report) closed at $173.86, marking a +1.1% move from the previous day. This change outpaced the S&P 500's 1.06% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.4%.

Coming into today, shares of the design software company had lost 19.68% in the past month. In that same time, the Computer and Technology sector lost 8.63%, while the S&P 500 lost 8.3%.

Investors will be hoping for strength from Autodesk as it approaches its next earnings release. On that day, Autodesk is projected to report earnings of $1.56 per share, which would represent year-over-year growth of 28.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, up 15.3% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.51 per share and revenue of $5 billion, which would represent changes of +28.4% and +13.95%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Autodesk. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Autodesk is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Autodesk's current valuation metrics, including its Forward P/E ratio of 26.42. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 26.42.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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