Stock of the Day

December 4, 2020

PTC (PTC)

$170.15
+$2.34 (+1.4%)
Market Cap: $20.42B

About PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

PTC Bull Case

Here are some ways that investors could benefit from investing in PTC Inc.:

  • PTC Inc. reported strong earnings with an EPS of $1.79, significantly exceeding the consensus estimate, indicating robust financial performance.
  • The company achieved a revenue of $636.37 million, surpassing analyst expectations, which reflects effective business operations and market demand for its products.
  • PTC Inc. has a solid return on equity of 14.49%, suggesting efficient management and profitability relative to shareholder equity.
  • The current stock price is around $168.77, which is near its 12-month high, indicating positive market sentiment and potential for further growth.
  • Recent investments from major institutional investors, such as Two Sigma Investments LP, demonstrate confidence in PTC Inc.'s future prospects.

PTC Bear Case

Investors should be bearish about investing in PTC Inc. for these reasons:

  • Despite recent growth, PTC Inc. has seen price target reductions from several analysts, which may indicate concerns about future performance.
  • With 95.14% of the stock owned by institutional investors, there may be less room for retail investors to influence stock price movements.
  • The company operates in a competitive technology sector, which can lead to volatility and uncertainty in its market position.
  • Analysts have mixed ratings, with some maintaining a "hold" rating, suggesting caution among investors regarding the stock's potential.
  • PTC Inc.'s net margin of 16.95% may be lower than some competitors, indicating potential challenges in maintaining profitability.
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