Investors interested in Internet - Software stocks are likely familiar with ZoomInfo (GTM) and Autodesk (ADSK). But which of these two companies is the best option for those looking for undervalued stocks?
ADSK faces restructuring impacts. Hold the stock or wait as Q1 nears, despite margin potential.
Autodesk (NASDAQ:ADSK), a software firm focused on design and digital creation tools, is set to announce its earnings on Thursday, May 22, 2025. A review of the last five years shows a balanced historical trend: the stock recorded a positive one-day return following earnings announcements in 50% of instances (with a median return of 1.7% and a maximum of 10.3%), while experiencing a negative one-day return in the other 50% (with a median of -6.3% and a maximum of -15.5%).
Beyond analysts' top -and-bottom-line estimates for Autodesk (ADSK), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended April 2025.
I reiterate my 'Buy' rating for Autodesk due to its robust profitability, high margins, and effective capital allocation through acquisitions and share buybacks. Autodesk's financial performance is strong, with $6.1 billion in revenue, 92% gross margins, and significant operating leverage leading to a $1.1 billion net profit. Despite a slight underperformance compared to the S&P 500, Autodesk's valuation remains fair relative to peers like Procore, given its superior profitability and steady growth.
Autodesk (ADSK) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the most recent trading session, Autodesk (ADSK) closed at $293.20, indicating a +1.99% shift from the previous trading day.
Autodesk (ADSK) concluded the recent trading session at $280.07, signifying a +0.03% move from its prior day's close.
Autodesk (ADSK) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Autodesk (ADSK) closed at $272.89 in the latest trading session, marking a +0.52% move from the prior day.
Software stocks may be facing macroeconomic headwinds, but first quarter momentum is keeping the sector afloat so far. Steve Koenig, Macquarie head of US technology research, explains why policy uncertainty and a weaker economy could pressure software spending.
Explore the exciting world of Autodesk (ADSK -0.69%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!