Autodesk (ADSK) Rises But Trails Market: What Investors Should Know

Autodesk (ADSK) closed the latest trading day at $217.93, indicating a +0.71% change from the previous session's end. This change lagged the S&P 500's 1.02% gain on the day. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 2.03%.

The design software company's stock has dropped by 16.9% in the past month, falling short of the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 3.15%.

Investors will be eagerly watching for the performance of Autodesk in its upcoming earnings disclosure. On that day, Autodesk is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 12.9%. Simultaneously, our latest consensus estimate expects the revenue to be $1.39 billion, showing a 9.7% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.01 per share and a revenue of $6.04 billion, signifying shifts of +5.39% and +9.88%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Autodesk. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Autodesk possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Autodesk is currently trading at a Forward P/E ratio of 27.02. This valuation marks a discount compared to its industry's average Forward P/E of 28.26.

Investors should also note that ADSK has a PEG ratio of 2 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.28 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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