1 Growth Stock to Buy for the Next Decade
Industrial software company PTC (NASDAQ: PTC) gave one of the most exciting earnings I've seen in the recent earnings season. Software companies often command high-valuation multiples to reflect their growth potential. Indeed, PTC did grow in its fiscal third quarter, and its guidance looks conservative. However, the outperformance came from its core products and not its growth-product portfolio. Moreover, the case for the stock rests on its resiliency in a downturn and its growth potential. Here's why PTC is a stock for the long term.
There are three parts to the argument:
PTC's key metric is its annual run rate (ARR), representing the "annualized value of our portfolio of active subscription software, cloud, SaaS, and support contracts as of the end of the reporting period." The excellent news from the third quarter is management raised its full-year ARR guidance (due to an acquisition and better-than-expected performance), and its fourth-quarter guidance looks highly achievable.
Source Fool.com
