Top Stock of the Week: ADSK

Alphanso’s AI Stock Research picked ADSK as one of the top stocks of the week.

Alphanso Rating: 9.4/10

ADSK (Autodesk Inc.) is a standout example of a high-quality company with solid valuation support, low risk of estimate cuts, and strong operational efficiency. 

Fundamental Metrics:

1. The company has solid forward revenue growth of 11.24% vs 9.85% industry median growth, pointing to strong business competitiveness.
2. The annual EBITDA margin of 21.3% demonstrates the company’s strong competitiveness and business sustainability. The margin has been steadily growing as well demonstrating operational efficiency.
3. Operating cash flow growth of 44.21% and a free cash flow yield of 4.5% shows strong business sustainability and efficiency.
4. The company trades at a forward PEG of 1.26 vs sector median of 1.93suggesting the stock is trading at a relatively cheaper price.
5. The company’s return on equity (ROE) of 106% shows signs of strong management.

Technical Metrics:

Based on the Alphanso model, the stock is trading below the expected channel (range) of $239.66- $251.65.