Autodesk (ADSK) ended the recent trading session at $250.13, marking a slight decrease of 0.39% from the previous day. While the stock’s performance lagged behind the S&P 500’s daily loss of 0.2%, it still demonstrates a positive trajectory in the broader market context. The Dow registered a loss of 0.15%, and the technology-focused Nasdaq experienced a decline of 0.34%. Despite the slight dip, Autodesk’s stock has exhibited impressive growth in the past month, climbing by 2.39%. This outperforms both the Computer and Technology sector’s gain of 0.96% and the S&P 500’s gain of 1.93%.
As Autodesk gears up for its upcoming earnings disclosure, analysts and investors alike are closely monitoring its performance. The company is scheduled to release its earnings report on August 29, 2024. Expectations are high, with analysts anticipating an earnings per share (EPS) of $2, representing a 4.71% increase compared to the same quarter of the previous year. The consensus estimate for revenue is currently at $1.48 billion, indicating a substantial 10.2% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates project earnings of $8.11 per share and revenue of $6.04 billion. These figures represent growth of +6.71% and +9.96%, respectively, from the previous year. It’s important for investors to pay close attention to any recent changes in analyst estimates for Autodesk. These revisions offer valuable insights into the evolving nature of short-term business trends. Positive estimate revisions are often seen as a favorable indicator of the company’s future prospects.
To assess the impact of these revisions on Autodesk’s stock performance, we utilize the Zacks Rank, a proprietary model that incorporates estimate changes and provides a functional rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a proven track record of outperforming, as validated by independent audits. Stocks rated #1 have consistently generated an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate for Autodesk has remained unchanged. Currently, Autodesk holds a Zacks Rank of #3 (Hold).
In terms of valuation, Autodesk currently boasts a Forward P/E ratio of 30.96. This figure aligns closely with the average Forward P/E of 30.96 for its industry, suggesting no significant deviation. Autodesk’s PEG ratio stands at 2.3. The PEG ratio, similar to the P/E ratio, incorporates the company’s expected earnings growth trajectory. The Computer – Software industry, to which Autodesk belongs, holds an average PEG ratio of 2.36 based on recent closing prices. The Computer – Software industry is part of the broader Computer and Technology sector. This industry currently holds a Zacks Industry Rank of 72, placing it in the top 29% of all 250+ industries. The Zacks Industry Rank measures the strength of industry groups by evaluating the average Zacks Rank of individual stocks within the groups. Our research indicates that industries in the top 50% consistently outperform those in the bottom half by a factor of 2 to 1.
Autodesk’s recent stock performance, coupled with its strong earnings outlook and favorable industry position, suggests continued growth potential. Investors are advised to stay informed about the company’s upcoming earnings release, as it could provide further insights into its future trajectory.
