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Autodesk (ADSK) Gains But Lags Market: What You Should Know

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Autodesk (ADSK - Free Report) closed at $291.19 in the latest trading session, marking a +0.7% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%.

Prior to today's trading, shares of the design software company had lost 0.52% over the past month. This has was narrower than the Computer and Technology sector's loss of 2.38% and lagged the S&P 500's loss of 0.05% in that time.

Investors will be hoping for strength from ADSK as it approaches its next earnings release. In that report, analysts expect ADSK to post earnings of $1.25 per share. This would mark year-over-year growth of 20.19%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 17.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.97 per share and revenue of $4.37 billion, which would represent changes of +22.72% and +15.21%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ADSK. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. ADSK is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ADSK is currently trading at a Forward P/E ratio of 58.17. This valuation marks a premium compared to its industry's average Forward P/E of 35.02.

Meanwhile, ADSK's PEG ratio is currently 1.66. 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 2.98 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 163, putting it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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