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

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In the latest trading session, Autodesk (ADSK - Free Report) closed at $259.10, marking a -0.41% move from the previous day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Heading into today, shares of the design software company had lost 3.5% over the past month, outpacing the Computer and Technology sector's loss of 5.11% and lagging the S&P 500's gain of 0.22% in that time.

Wall Street will be looking for positivity from Autodesk as it approaches its next earnings report date. In that report, analysts expect Autodesk to post earnings of $1.43 per share. This would mark year-over-year growth of 21.19%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 14.8% from the year-ago period.

ADSK's full-year Zacks Consensus Estimates are calling for earnings of $5.01 per share and revenue of $4.37 billion. These results would represent year-over-year changes of +23.7% and +15.23%, respectively.

Investors might also notice recent changes to analyst estimates for Autodesk. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Autodesk is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Autodesk is holding a Forward P/E ratio of 51.97. For comparison, its industry has an average Forward P/E of 38.28, which means Autodesk is trading at a premium to the group.

Meanwhile, ADSK's PEG ratio is currently 1.48. 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. ADSK's industry had an average PEG ratio of 2.77 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 164, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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