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Valued at a market cap of $23.9 billion, PTC Inc. (PTC) provides software solutions and services that help manufacturing companies design, operate, and manage products. Based in Boston, Massachusetts, the company offers a comprehensive portfolio of software solutions, including computer-aided design modeling, product lifecycle management, data orchestration, and experience creation products.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and PTC fits this label perfectly. The computer software company has consistently innovated in the product development space for over 40 years and has served market leaders and disruptors across major manufacturing verticals, including auto, A&D, industrials, and life sciences.
PTC is currently trading 1.5% below its 52-week high of $203.09, reached on Dec. 12. Shares of this tech company have gained 15.1% over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 5% returns during the same time frame.
However, in the longer term, PTC has gained nearly 17% over the past 52 weeks, slightly underperforming DOWI’s 17.2% returns. Moreover, on a YTD basis, shares of PTC are up almost 14.4%, lagging behind DOWI’s 16% gains over the same time frame.
To confirm its recent bullish trend, PTC has been trading above its 200-day moving average since early October and has remained above its 50-day moving average since mid-September.
On Dec. 4, PTC announced that it has partnered with Microsoft and Volkswagen Group to create the Codebeamer Copilot, a generative AI-powered tool designed to support software development in physical products, such as vehicles, by streamlining product requirements management, testing, validation, and release processes.
PTC released its Q4 earnings results on Nov. 6. The company’s revenue increased 14.6% year-over-year to $626.55 million, while its EPS of $1.54 improved 28.3% from the year-ago quarter. Despite this, shares of PTC closed down more than 4% the following day, primarily due to the company’s cautious outlook for fiscal 2025, which was mainly driven by potential near-term disruptions from its go-to-market realignment.
PTC has lagged behind its rival, Autodesk, Inc. (ADSK), which soared 25.8% over the past 52 weeks and 25.2% on a YTD basis.
Given PTC’s recent outperformance, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 18 analysts covering it, and the mean price target of $203.72 suggests a marginal premium to its current levels.
