The Smartest People On Wall Street Are Buying These 3 Stocks -- Should You Follow?

I recently ran a stock screener to find the large-cap stocks that hedge funds were buying in the third quarter, and three names grabbed my eye. 3D engineering and design software company Autodesk (NASDAQ: ADSK), data center real estate investment (REIT) Equinix (NASDAQ: EQIX), and sustainable water technology company Xylem (NYSE: XYL) all had more than 70 investment managers initiating new positions in the third quarter, but are they still buys now?

This company sells design and engineering software to architecture, engineering, and construction companies (60% of sales) and to manufacturing companies (30%), with the rest coming from media and entertainment.

The investment case for the stock rests on the idea that the company's transition toward selling its software on a subscription basis (as opposed to software licenses) will enable it to better convert non-paying users. It's a highly relevant point because the explosion in digitization (3D modeling, collaboration in the cloud, etc.) in engineering and design means customers using older products will miss out on new solutions from Autodesk.

Source Fool.com