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PTC, IBD Stock Of The Day, Flirts With Buy Zone Ahead Of Earnings Report

P T C Inc

P T C Inc

PTC


$3.41


2.38%


7%

IBD Stock Analysis

  • Stock flirting with buy point of 147.77 out of second-stage consolidation
  • Ranks first out of 11 stocks in IBD’s Computer-Software Design group
  • Composite Rating is 93 out of 99; Relative Strength ranks 84 out of 99

Industry Group Ranking

Emerging Pattern

Consolidation

* Not real-time data. All data shown was captured at
1:59PM EDT on
04/08/2021.

PTC (PTC) is the IBD Stock Of The Day as the enterprise software firm is seeing solid demand for its design and engineering tools. PTC stock flirted with a buy zone on Thursday.




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The Boston-based company makes computer-aided design tools as well as software for product life cycle management, industrial Internet of Things and augmented reality.

On the stock market today, PTC stock hit a buy point of 147.77 out of a seven-week consolidation period, according to IBD MarketSmith charts. However, it later pulled back. PTC stock ended the regular session at 146.63, up 2.4%. Volume was modestly above average, and too light for a breakout.

In intraday trading Thursday, PTC stock notched a record high of 149.26.

Second-Quarter Earnings Due April 28

PTC plans to report its fiscal second-quarter results on April 28. Analysts expect the company to earn 70 cents a share on sales of $416.2 million. That would translate to year-over-year growth of 19% in earnings and 16% in sales.

In its fiscal first quarter ended Dec. 31, PTC earned an adjusted 97 cents a share, up 70%, on sales of $429.1 million, up 20%.

Like other enterprise software firms, PTC has shifted to a software-as-a-service business model. That cloud computing model offers a more stable and predictable revenue stream than licensed software sales.

PTC bolstered its computer-aided design and product life cycle management offerings with the acquisition of Arena Solutions. It bought Arena in January for $715 million in cash.

“We continue to like PTC as a top idea,” Baird analyst Joe Vruwink said in a recent note to clients. He rates PTC stock as outperform, or buy.

PTC is benefiting from an improvement in the manufacturing sector, Vruwink said.

Among its businesses, product life cycle management has been “a standout category at PTC for a number of years,” he said. “Management cited PLM as ‘an anchor tenant’ for digital transformation efforts at industrial companies.”

PTC Stock Ranks First In Its Industry Group

PTC stock ranks first out of 11 stocks in IBD’s Computer Software-Design industry group, according to IBD Stock Checkup. It sports an IBD Composite Rating of 93 out of 99. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

The design software industry group currently ranks No. 153 out of 197 industry groups that IBD tracks. Choosing highly rated stocks from leading industry groups in a confirmed stock market uptrend generally increases your chances of making profits in growth stocks.

PTC stock has an IBD Relative Strength Rating of 84 out of 99. The Relative Strength rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks. The best growth stocks typically have RS Ratings of at least 80.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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