Copyright Forbes
Autodesk (ADSK) is approaching a key technical support level, drawing attention from investors evaluating potential buying opportunities. Backed by strong fundamentals and steady demand for its design and engineering software, the stock is at a point where history suggests it could see meaningful upward momentum. ADSK stock deserves a spot on your watchlist. Here is why – it is presently trading within the support zone ($282.32 – $312.04), which are levels from which it has significantly rebounded in the past. Over the last 10 years, Autodesk stock attracted buying interest at this level on 3 occasions and subsequently resulted in an average peak return of 15.1%. But is the price movement sufficient on its own? It certainly helps if the fundamentals support it. For ADSK, read Buy or Sell ADSK Stock to determine how compelling this buying opportunity may be. Individual stocks can experience volatility, but markets are not immune either – consider 2008, 2020. Volatility occurs. Observe how Trefis’ Boston-based wealth management partner's asset allocation framework managed both situations. MORE FOR YOU Here are some quick data points for Autodesk that should assist in decision-making: Revenue Growth: 13.8% LTM and an 11.7% average over the last 3 years. Cash Generation: Close to 28.0% free cash flow margin and a 22.9% operating margin LTM. Recent Revenue Shocks: The lowest annual revenue growth for ADSK in the last 3 years was 9.9%. Valuation: ADSK stock is trading at a PE multiple of 60.7. For a quick overview, Autodesk offers 3D design, engineering, and entertainment software, including civil engineering solutions for land development, transportation, and environmental projects, distributed both directly and through resellers worldwide. What Is Stock-Specific Risk If The Market Crashes? Autodesk has experienced significant declines during major market crashes. It dropped approximately 64% during the Dot-Com bubble and nearly 77% during the Global Financial Crisis. The inflation shock of 2022 was also harsh, resulting in a 52% decline. Even smaller shocks like the 2018 correction and the Covid pandemic adversely affected it, both erasing around 25-35% from peak to trough. Therefore, while Autodesk showcases robust fundamentals, it remains susceptible to considerable sell-offs during periods of turmoil. However, the risk isn't confined to major market downturns. Stocks can decline even when markets are performing well – consider situations such as earnings releases, business updates, or outlook revisions. Read ADSK Dip Buyer Analyses to discover how the stock has bounced back from sharp declines in the past.
