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Why Autodesk (ADSK) Outpaced the Stock Market Today

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Autodesk (ADSK - Free Report) ended the recent trading session at $299.43, demonstrating a +1.45% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.

Shares of the design software company have depreciated by 1.92% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.6%, and the S&P 500's gain of 5.88%.

Market participants will be closely following the financial results of Autodesk in its upcoming release. The company is expected to report EPS of $2.44, up 13.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.73 billion, up 14.65% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.64 per share and revenue of $6.97 billion, indicating changes of +13.81% and +13.67%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Autodesk. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Autodesk currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Autodesk has a Forward P/E ratio of 30.62 right now. This expresses a premium compared to the average Forward P/E of 29.18 of its industry.

We can additionally observe that ADSK currently boasts a PEG ratio of 1.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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