Zacks Equity Research
3 min read
Autodesk (ADSK) closed at $208.98 in the latest trading session, marking a +1.49% move from the prior day. The stock’s change was more than the S&P 500’s daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
The design software company’s shares have seen an increase of 2.25% over the last month, surpassing the Computer and Technology sector’s loss of 0.53% and the S&P 500’s gain of 1.61%.
Market participants will be closely following the financial results of Autodesk in its upcoming release. The company is expected to report EPS of $3.12, up 19.08% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.01 billion, reflecting a 13.96% rise from the equivalent quarter last year.
ADSK’s full-year Zacks Consensus Estimates are calling for earnings of $12.58 per share and revenue of $8.19 billion. These results would represent year-over-year changes of +20.61% and +13.65%, respectively.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Autodesk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Autodesk is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Autodesk is currently exchanging hands at a Forward P/E ratio of 16.37. This expresses a discount compared to the average Forward P/E of 19.89 of its industry.
Meanwhile, ADSK’s PEG ratio is currently 0.97. 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. As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 1.06.
The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% of all 250+ industries.
