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

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The latest trading session saw Autodesk (ADSK - Free Report) ending at $209.95, denoting a -0.36% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.51%.

Coming into today, shares of the design software company had lost 14.48% in the past month. In that same time, the Computer and Technology sector lost 4.63%, while the S&P 500 lost 4.2%.

The upcoming earnings release of Autodesk will be of great interest to investors. The company is predicted to post an EPS of $1.75, indicating a 12.9% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.39 billion, indicating a 9.7% increase compared to the same quarter of the previous year.

ADSK's full-year Zacks Consensus Estimates are calling for earnings of $8.01 per share and revenue of $6.04 billion. These results would represent year-over-year changes of +5.39% and +9.88%, respectively.

It is also important to note the recent changes to analyst estimates for Autodesk. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Autodesk is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, Autodesk is presently being traded at a Forward P/E ratio of 26.31. Its industry sports an average Forward P/E of 28.52, so one might conclude that Autodesk is trading at a discount comparatively.

It is also worth noting that ADSK currently has a PEG ratio of 1.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.23.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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