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San Francisco, California-based Autodesk, Inc. (ADSK) provides 3D design, engineering, and entertainment technology solutions. With a market cap of $55.8 billion, Autodesk’s operations span the Americas, Europe, Middle East and Africa, and Asia Pacific.
Companies worth $10 billion or more are generally described as "large-cap stocks," Autodesk fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the software application industry. It serves various industries, including architecture, construction, product design, entertainment, and more.
Autodesk touched its 52-week high of $279.53 on Mar. 1 and is now trading 7.2% below that peak. ADSK has gained 16.3% over the past three months, outpacing the SPDR S&P Software & Services ETF’s (XSW) 3.1% gains during the same time frame.
Over the longer term, ADSK stock looks even more appealing. ADSK has gained 22.5% over the past 52 weeks and 6.6% in 2024, outperforming XSW’s 16.1% gains over the past year and 1.8% returns on a YTD basis.
To confirm the bullish trend, ADSK has been trading above its 50-day and 200-day moving averages since mid-June with slight fluctuations.
Shares of Autodesk saw marginal gains in the trading session after the release of its Q2 earnings on Aug. 29. It reported a robust 11.9% annual revenue growth, reaching $1.5 billion, exceeding Wall Street expectations. Meanwhile, the company showcased impressive operational efficiency leading to net margin expansion and a staggering 27% growth in net income, totaling $282 million compared to the year-ago quarter. Moreover, its EPS of $1.51 surpassed the consensus estimates by 11.9%. Autodesk also raised the mid-points of billings, revenue, earnings per share, and free cash flow guidance ranges, bolstering investor confidence.
Autodesk’s competitor ANSYS, Inc. (ANSS) has underperformed ADSK. ANSS gained 2.1% over the past year and declined 12.1% on a YTD basis
Among the 20 analysts covering the ADSK stock, the consensus rating is a “Moderate Buy.” The mean price target of $296.31 represents a potential upside of 14.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
