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

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Autodesk (ADSK - Free Report) closed at $227.26 in the latest trading session, marking a +0.42% move from the prior day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Heading into today, shares of the design software company had gained 32.39% over the past month, outpacing the Computer and Technology sector's gain of 8.42% and the S&P 500's gain of 8.06% in that time.

Wall Street will be looking for positivity from Autodesk as it approaches its next earnings report date. This is expected to be August 24, 2022. The company is expected to report EPS of $1.56, up 28.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.22 billion, up 15.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.50 per share and revenue of $5 billion, which would represent changes of +28.21% and +13.99%, respectively, from the prior year.

It is also important to note the 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. Autodesk is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Autodesk is holding a Forward P/E ratio of 34.8. For comparison, its industry has an average Forward P/E of 28.51, which means Autodesk is trading at a premium to the group.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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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