Back to top

Image: Bigstock

Autodesk (ADSK) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Autodesk (ADSK - Free Report) closed at $314.92, marking a -0.03% move from the previous day. This change lagged the S&P 500's 0.37% gain on the day.

Prior to today's trading, shares of the design software company had gained 15.42% over the past month. This has outpaced the Computer and Technology sector's gain of 5.35% and the S&P 500's gain of 5.96% in that time.

Wall Street will be looking for positivity from ADSK as it approaches its next earnings report date. 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 17.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $4.37 billion. These totals would mark changes of +22.72% and +15.22%, respectively, from last year.

Any recent changes to analyst estimates for ADSK should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, the Zacks Consensus EPS estimate has moved 1.21% lower. ADSK is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ADSK's current valuation metrics, including its Forward P/E ratio of 63.37. For comparison, its industry has an average Forward P/E of 38.7, which means ADSK is trading at a premium to the group.

Also, we should mention that ADSK has a PEG ratio of 1.81. 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. The Computer - Software industry currently had an average PEG ratio of 2.84 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Autodesk, Inc. (ADSK) - free report >>

Published in