Autodesk (ADSK) Stock Dips While Market Gains: Key Facts

The investment community will be paying close attention to the earnings performance of Autodesk in its upcoming release. The company's upcoming EPS is projected at $3.12, signifying a 19.08% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, up 13.96% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.58 per share and a revenue of $8.19 billion, signifying shifts of +20.61% and +13.65%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Autodesk. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Autodesk is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Autodesk is currently exchanging hands at a Forward P/E ratio of 19.5. This indicates a discount in contrast to its industry's Forward P/E of 20.68.

Investors should also note that ADSK has a PEG ratio of 1.16 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.18 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 41% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research