Autodesk (ADSK) ended the recent trading session at $243.16, demonstrating a +1.6% change from the preceding day’s closing price. This move outpaced the S&P 500’s daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
The design software company’s stock has dropped by 3.69% in the past month, falling short of the Computer and Technology sector’s gain of 9.34% and the S&P 500’s gain of 5.98%.
The upcoming earnings release of Autodesk will be of great interest to investors. It is anticipated that the company will report an EPS of $2.84, marking a 24.02% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.89 billion, indicating a 16.02% upward movement from the same quarter last year.
ADSK’s full-year Zacks Consensus Estimates are calling for earnings of $12.38 per share and revenue of $8.15 billion. These results would represent year-over-year changes of +18.7% and +13.04%, respectively.
Investors might also notice recent changes to analyst estimates for Autodesk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Autodesk boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Autodesk is holding a Forward P/E ratio of 19.33. This signifies a premium in comparison to the average Forward P/E of 18.83 for its industry.
It’s also important to note that ADSK currently trades at a PEG ratio of 1.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Internet – Software industry held an average PEG ratio of 1.09.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
