Is Autodesk Stock a Buy?
In prior economic downturns, demand for Autodesk's (NASDAQ: ADSK) design software for architecture, engineering, and manufacturing has suffered. But 2020 is different. Not only is the coronavirus crisis creating unique challenges for organizations to navigate, it has simultaneously created opportunities for those that have already been upgrading to a digital-first era. That's just the situation Autodesk finds itself in: There are difficulties arising as a result of the global economic shutdown, but its suite of design software had already been transitioning to a model that would make it more resilient in lean times.
The first quarter of 2020 bore this out, and Autodesk forecast another year of strong growth ahead even in the face of adversity. It doesn't exactly come cheap, but this stock is a buy.
Autodesk had a great showing in 2019 as it outpaced stellar returns for the stock market overall, and while 2020 is proving to be a memorable start to the new decade for all the wrong reasons, Autodesk followed up last year's performance with a strong showing in the first quarter. Revenues increased 20% year over year to $886 million, adjusted operating profit margin increased 10 percentage points to 28%, and adjusted earnings per share increased 89% to $0.85.
Source Fool.com
