Over the last year, many tech stocks have seen a meteoric rise as the pandemic accelerated the push toward digital solutions. While the underlying performance of some tech businesses warranted their strong gains in the market, many others are arguably overvalued.
Differentiating between the two can be tough, but there are three stocks in particular that are still poised for a bright future.
1. Autodesk: Building the future
Autodesk (NASDAQ:ADSK) provides software and design tools to the Architecture, Engineering, and Construction (AEC) industry. Put simply, the company builds software that helps people make things. With more than five million users around the globe, many projects stem from one version or another of Autodesk’s software.
In 2016, Autodesk began pivoting from a licensing model to a subscription model. Since that time, revenue has grown by only 51%, but its operating cash flow margin expanded from