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Autodesk (ADSK) Rises But Trails Market: What Investors Should Know

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In the latest market close, Autodesk (ADSK - Free Report) reached $306.85, with a +0.2% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.35%.

Heading into today, shares of the design software company had gained 4.69% over the past month, outpacing the Computer and Technology sector's loss of 1.35% and the S&P 500's gain of 1.02% in that time.

The upcoming earnings release of Autodesk will be of great interest to investors. It is anticipated that the company will report an EPS of $2.13, marking a 1.91% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.63 billion, up 11.01% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Autodesk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.67% lower. Autodesk is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Autodesk is holding a Forward P/E ratio of 33.15. Its industry sports an average Forward P/E of 31, so one might conclude that Autodesk is trading at a premium comparatively.

Meanwhile, ADSK's PEG ratio is currently 2.25. 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 Computer - Software was holding an average PEG ratio of 2.24 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 139, this industry ranks in the bottom 45% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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