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Here's Why PTC Appears to be an Attractive Investment Bet
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PTC (PTC - Free Report) is one stock investors may consider adding to their portfolio to combat the highly volatile market environment and make some gains from its upside potential. The company currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recently, the Federal Reserve announced the biggest interest rate hike of 75 basis points or 0.75% since 1994 to tackle the rising inflation. Inflation in the United States has reached a 40-year-high of 8.6%, according to the latest Consumer Price Index data.
Rising crude-oil prices and the ongoing Russia-Ukraine war further increased worries for investors about the global economic recovery.
The stock is down 34.8% from its 52-week high level of $153.73 on Jul 23, 2021, making it more affordable for investors.
PTC has an impressive earnings surprise history. The company outpaced estimates in all the trailing four quarters, delivering an earnings surprise of 29.43%, on average. The stock has impressive long-term earnings per share growth expectation of 11.8%
The Zacks Consensus Estimate of $4.55 per share for fiscal 2022 earnings has moved up 7.6% in the past 60 days. For fiscal 2023, the consensus mark for earnings is pegged at $5.32, up 5.1% over the past 60 days.
PTC reported second-quarter fiscal 2022 non-GAAP earnings of $1.39 per share, rising 28.7% on a year-over-year basis and beating the Zacks Consensus Estimate by 26.4%.
Revenues came in at $505 million, up 9% year over year (up 13% at constant currency or cc). The top line beat the Zacks Consensus Estimate by 5.4%.
Strong Fundamental Drivers
Boston, MA-based PTC provides software solutions and services globally that aid manufacturing companies to design, operate and manage products.
The company offers a comprehensive portfolio of software solutions comprising computer-aided design (CAD) modeling, product lifecycle management, data orchestration (IoT) and experience creation (AR) products.
PTC’s performance benefits from robust demand for products (digital transformation and SaaS) across all segments and regions. The company is also working toward accelerating the SaaS transition by increasing the capacity of its Atlas platform and improving the SaaS capabilities.
PTC raised annual guidance for ARR to $1,640-$1,665 million due to improvement in renewal rates. The company launched ThingWorx Digital Performance Management Solution and Windchill+ to improve SaaS offerings. PTC signed nine other deals across various industries like aerospace and defense, high-tech, automotive and food and beverage.
Increasing spending by enterprises on emerging categories like IoT and AR/VR presents significant prospects for PTC. Per Mordor Intelligence data, the global IoT market is anticipated to witness a CAGR of 10.53% between 2022 and 2027.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Vishay Intertechnology (VSH - Free Report) and Avnet (AVT - Free Report) . InterDigital and Avnet currently sport a Zacks Rank #1, whereas Vishay Intertechnology holds a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $3.28 per share, increasing 5.13% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.13%. Shares of IDCC have declined 23.7% in the past year.
The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.
Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.96%. Shares of VSH have declined 21.2% in the past year.
The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.
Avnet’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 21.22%. Shares of Avnet have grown 3.1% in the past year.
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Here's Why PTC Appears to be an Attractive Investment Bet
PTC (PTC - Free Report) is one stock investors may consider adding to their portfolio to combat the highly volatile market environment and make some gains from its upside potential. The company currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recently, the Federal Reserve announced the biggest interest rate hike of 75 basis points or 0.75% since 1994 to tackle the rising inflation. Inflation in the United States has reached a 40-year-high of 8.6%, according to the latest Consumer Price Index data.
Rising crude-oil prices and the ongoing Russia-Ukraine war further increased worries for investors about the global economic recovery.
PTC Inc. Price
PTC Inc. price | PTC Inc. Quote
Keep an Eye on PTC
The stock is down 34.8% from its 52-week high level of $153.73 on Jul 23, 2021, making it more affordable for investors.
PTC has an impressive earnings surprise history. The company outpaced estimates in all the trailing four quarters, delivering an earnings surprise of 29.43%, on average. The stock has impressive long-term earnings per share growth expectation of 11.8%
The Zacks Consensus Estimate of $4.55 per share for fiscal 2022 earnings has moved up 7.6% in the past 60 days. For fiscal 2023, the consensus mark for earnings is pegged at $5.32, up 5.1% over the past 60 days.
PTC reported second-quarter fiscal 2022 non-GAAP earnings of $1.39 per share, rising 28.7% on a year-over-year basis and beating the Zacks Consensus Estimate by 26.4%.
Revenues came in at $505 million, up 9% year over year (up 13% at constant currency or cc). The top line beat the Zacks Consensus Estimate by 5.4%.
Strong Fundamental Drivers
Boston, MA-based PTC provides software solutions and services globally that aid manufacturing companies to design, operate and manage products.
The company offers a comprehensive portfolio of software solutions comprising computer-aided design (CAD) modeling, product lifecycle management, data orchestration (IoT) and experience creation (AR) products.
PTC’s performance benefits from robust demand for products (digital transformation and SaaS) across all segments and regions. The company is also working toward accelerating the SaaS transition by increasing the capacity of its Atlas platform and improving the SaaS capabilities.
PTC raised annual guidance for ARR to $1,640-$1,665 million due to improvement in renewal rates. The company launched ThingWorx Digital Performance Management Solution and Windchill+ to improve SaaS offerings. PTC signed nine other deals across various industries like aerospace and defense, high-tech, automotive and food and beverage.
Increasing spending by enterprises on emerging categories like IoT and AR/VR presents significant prospects for PTC. Per Mordor Intelligence data, the global IoT market is anticipated to witness a CAGR of 10.53% between 2022 and 2027.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Vishay Intertechnology (VSH - Free Report) and Avnet (AVT - Free Report) . InterDigital and Avnet currently sport a Zacks Rank #1, whereas Vishay Intertechnology holds a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $3.28 per share, increasing 5.13% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.13%. Shares of IDCC have declined 23.7% in the past year.
The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.
Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.96%. Shares of VSH have declined 21.2% in the past year.
The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.
Avnet’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 21.22%. Shares of Avnet have grown 3.1% in the past year.