Autodesk, Inc. (ADSK): Identifying A Market Opportunity And Capitalizing On It

The price of Autodesk, Inc. (NASDAQ:ADSK) stock ended January 13, 2020 trading at $192.45 which saw downtrend of 4.9% since the beginning of 2020. For most investors, the 0.05% rally in the share price could have prompted them to buy the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock.

A look at the ADSK stock today shows that it has gained 40.74% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Autodesk, Inc. (NASDAQ:ADSK). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Autodesk, Inc. (ADSK) is 2 which is a buy rating. Over the past week, the stock has been rated as a Buy 11 times while it has been rated as a Hold 3 times. The 52-week high price for ADSK is $193.42 which is attained on January 10 while its 52-week low currently stands at $129.7 and was reached on August 28. At the moment, the stock is trading $3.19 above its YTD moving average set at $189.26.

Moving on, Autodesk, Inc. (ADSK) last released its earnings for the October 2020 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -455% year-over-year at $0.39. The company brought a surprise of -5 as analysts were predicting $0.41 per share. The revenue generated by Autodesk, Inc. in the October 2020 quarter surged by 28% to reach $842.7 million. This is high compared to the $660.9 million it recorded in the same quarter last year. To see what traders should watch in its January 2020 financial results, analysts have consensus earnings per share of $0.54 which is higher than the $0.2 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 58.65%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 0 % could be achieved. The company has also recorded a revenue of $3.11 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Autodesk, Inc. (NASDAQ:ADSK) is now trading at 324.54X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 32.06X while the industry average stands at 36.97X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Autodesk, Inc. was able to achieve an EPS of $0.59 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Monday, January 13 of 2020, the 14-day Absolute ATR (Average True Range) for ADSK moved by $3.13. Over the past seven days, the stock’s average daily volatility stood at 1.43%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Autodesk, Inc.’s trading volume has recently moved to 1.45 million, which is compared with the average daily volume of 1.33 million shares.

The daily chart for ADSK, points out that the company has recorded 10.79% gains over the past six months. However, it is still 48.38% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 2.85% though it is 4.07% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 11.38% while it is up 18.24% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of ADSK reveals that it has gained some grounds as it ended Monday with a 7.13% rise over the past 30 days.