Autodesk (ADSK) Surpasses Market Returns: Some Facts Worth Knowing
Autodesk (ADSK) closed at $201.60 in the latest trading session, marking a +0.84% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Coming into today, shares of the design software company had lost 4.77% in the past month. In that same time, the Computer and Technology sector gained 7.71%, while the S&P 500 gained 4.14%.
Investors will be eagerly watching for the performance of Autodesk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.75, reflecting a 12.9% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.39 billion, indicating a 9.7% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.01 per share and revenue of $6.04 billion, indicating changes of +5.39% and +9.88%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Autodesk. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Autodesk possesses a Zacks Rank of #3 (Hold).
Investors should also note Autodesk's current valuation metrics, including its Forward P/E ratio of 24.96. For comparison, its industry has an average Forward P/E of 27.71, which means Autodesk is trading at a discount to the group.
We can also see that ADSK currently has a PEG ratio of 1.84. 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 industry currently had an average PEG ratio of 2.3 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Autodesk, Inc. (ADSK) : Free Stock Analysis Report
