3 Great Reasons to Buy PTC Stock Despite Investor Fears
The market sold off shares of industrial software company PTC (NASDAQ: PTC) after it delivered a slightly disappointing fiscal second-quarter report last week. While the results and guidance could have been better, some perspective needs to be applied. The company remains in high-growth mode, and it's still one of the best ways to play the ongoing digital revolution in the industrial sector. Here are three reasons why PTC stock is attractive.
Let's start off by addressing the elephant in the room: The stock sold off by a double-digit percentage after the earnings release. The main reason for that was a slightly disappointing result on one key metric that management advises investors to follow -- the company's annual run rate (ARR). According to CEO Jim Heppelmann on the earnings call, by ARR, PTC is "referring to the annualized run rate of the book of recurring revenue contracts that are currently active."
PTC's augmented reality sales are growing fast. Image source: Getty Images.
Source Fool.com
