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

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Autodesk (ADSK - Free Report) closed at $320.91 in the latest trading session, marking a +1.64% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.39%.

Shares of the design software company witnessed a loss of 0.56% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.78%, and the S&P 500's gain of 3.94%.

Investors will be eagerly watching for the performance of Autodesk in its upcoming earnings disclosure. In that report, analysts expect Autodesk to post earnings of $2.49 per share. This would mark year-over-year growth of 14.75%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.8 billion, indicating a 14.95% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.92 per share and a revenue of $7.06 billion, representing changes of +17.12% and +15.08%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Autodesk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has remained steady. Autodesk currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Autodesk currently has a Forward P/E ratio of 31.83. This expresses a premium compared to the average Forward P/E of 29.57 of its industry.

It's also important to note that ADSK currently trades at a PEG ratio of 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.27.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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