PTC Inc. (NASDAQ:PTC) combines strong revenue growth, high profitability, and bullish technical trends, making it a compelling growth stock with breakout potential.
The stocks featured in this article have all approached their 52-week highs.
When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Unity (NYSE:U) and the rest of the design software stocks fared in Q2.
Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital.
The select few that can do all three for many years are often the ones that make you life-changing money.
Engineering and design software provider PTC (NASDAQ:PTC) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 24.2% year on year to $643.9 million. On top of that, next quarter’s revenue guidance ($755 million at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its non-GAAP profit of $1.64 per share was 35.3% above analysts’ consensus estimates.
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets.
But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning.
Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
A number of stocks fell in the afternoon session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
Shares of engineering and design software provider PTC (NASDAQ:PTC) jumped 6.9% in the afternoon session after the company reported strong third-quarter fiscal 2025 results that beat analyst expectations and led to a raised full-year outlook. The design software provider reported that its revenue grew 24% year-over-year to $644 million. Net income surged a remarkable 104.9%, which marked its highest level for a fiscal third quarter in over two decades. In response to the strong quarter, PTC lifted its full-year forecast for key financial metrics including revenue, free cash flow, and earnings per share. The positive results arrived amid broader strength in the software-as-a-service sector. The news prompted positive reactions from Wall Street, and the stock reached an all-time high.
Stay informed about the performance of the S&P500 index in the middle of the day on Thursday. Uncover the top gainers and losers in today's session for valuable insights.
Engineering and design software provider PTC (NASDAQ:PTC) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 24.2% year on year to $643.9 million. On top of that, next quarter’s revenue guidance ($755 million at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its GAAP profit of $1.17 per share was 45.8% above analysts’ consensus estimates.
After the conclusion of the US market's regular session on Wednesday, let's examine the after-hours session and unveil the notable S&P500 performers among the top gainers and losers.
PTC Inc (NASDAQ:PTC) excels in quality investing with strong revenue growth, high ROIC, solid cash flow, and competitive edges in PLM and industrial IoT software.
