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Autodesk, Inc. (ADSK), headquartered in San Francisco, California, provides 3D design, engineering, and entertainment technology solutions. Valued at $63.7 billion by market cap, the company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ADSK definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the software - application industry. ADSK is a leader in design and engineering software, built on a legacy of innovation and a diverse product portfolio. The company showcases strong financials and customer trust. Strategic acquisitions, like Payapps Limited, and cloud-based platforms such as Autodesk Construction Cloud, enhance its market position and workflow convergence. A successful subscription model provides predictable income, allowing Autodesk to scale offerings and adapt to market demands while maintaining a loyal customer base.
Despite its notable strength, ADSK slipped 9% from its 52-week high of $326.62, achieved on Nov. 25, 2024. Over the past three months, ADSK stock gained 14.4%, outperforming the Dow Jones Industrials Average’s ($DOWI) marginal loss during the same time frame.
In the longer term, shares of ADSK rose slightly on a YTD basis, in-line with DOWI’s YTD gains. Nonetheless, the stock climbed 37.6% over the past 52 weeks, outperforming DOWI’s 10.2% returns over the last year.
To confirm the bullish trend, ADSK has been trading above its 50-day moving average since late April. The stock has been trading above its 200-day moving average since early May.
On May 22, ADSK shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $2.29 exceeded Wall Street expectations of $2.14. The company’s revenue was $1.63 billion, topping Wall Street forecasts of $1.61 billion. ADSK expects full-year adjusted EPS in the range of $9.50 to $9.73, and expects revenue to range from $6.9 billion to $7 billion.
In the competitive arena of software - application, Dassault Systèmes SE (DASTY) has taken the lead over ADSK, showing resilience with a 6.9% gain on a YTD basis but lagged behind the stock with an 8.5% downtick over the past 52 weeks.
Wall Street analysts are bullish on ADSK’s prospects. The stock has a consensus “Strong Buy” rating from the 26 analysts covering it, and the mean price target of $341.12 suggests a potential upside of 14.8% from current price levels.
On the date of publication, Neha Panjwani 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.
