4-Star Stocks Poised to Pop: Autodesk
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, architecture software specialist Autodesk (NAS: ADSK) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Autodesk's business and see what CAPS investors are saying about the stock right now.
Autodesk facts
| Headquarters (Founded) | San Rafael, Calif. (1982) |
| Market Cap | $7.89 billion |
| Industry | Application software |
| Trailing-12-Month Revenue | $2.15 billion |
| Management | CEO Carl Bass (since May 2006) CFO Mark Hawkins (since April 2009) |
| Return on Equity (average, past 3 years) | 7.6% |
| Cash/Debt | $1.34 billion / $0 |
| Competitors | Ansys (NAS: ANSS) Parametric Technology (NAS: PMTC) Sony (NYS: SNE) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 814 members who have rated Autodesk believe the stock will outperform the S&P 500 going forward. These bulls include hiransaroj and NHWeston.
Just last month, hiransaroj tapped the stock as a solid opportunity: "[AutoDesk] has wide moat with enduring customer stickiness. ... Architects and engineers will perpetually use AutoCAD and BIM as standard applications for the construction industry."
Autodesk even boasts $1.34 billion in cash on its balance sheet with zero debt. Meanwhile, rivals Ansys, Parametric, and Sony sport debt-to-equity ratios of 8%, 24%, and 36%, respectively.
CAPS member NHWeston elaborates on the Autodesk bull case:
If it does as well in [cloud computing] as it has in its more traditional areas, it's going to make some good money. What also may happen is that Autodesk will make itself more attractive as a merger or buyout candidate for some larger player interested in a fast ramp-up. Either way, they're gonna make money. I'd buy now.
What do you think about Autodesk, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Autodesk. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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