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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 $305.86, marking a +1.79% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.57%.

Prior to today's trading, shares of the design software company had lost 4.67% over the past month. This has lagged the Computer and Technology sector's gain of 9.84% and the S&P 500's gain of 4.69% in that time.

Investors will be hoping for strength from ADSK as it approaches its next earnings release, which is expected to be February 25, 2021. On that day, ADSK is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 16.3%. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, up 12.16% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for ADSK. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. ADSK is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ADSK has a Forward P/E ratio of 59.1 right now. For comparison, its industry has an average Forward P/E of 39.26, which means ADSK is trading at a premium to the group.

It is also worth noting that ADSK currently has a PEG ratio of 1.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ADSK's industry had an average PEG ratio of 3 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ADSK in the coming trading sessions, be sure to utilize Zacks.com.


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